EP agrees to revision of EWC Directive

On 16 December 2008 the European Parliament approved the revision of the EWC Directive. It was also endorsed at the Council of the European Union a day later.

An important improvement in the recast EWC Directive is the new definition of information and an improved definition of consultation. To begin with, it is already a good thing that there now is a clear distinction between these two concepts. The misunderstanding arising from the EWC being told something and that being immediately considered as it having been consulted has been cast away forever. Consultation up to now had been defined as dialogue and an exchange of views, but now it has to happen at a certain time, in a certain fashion and with such content as are appropriate to enable employee representatives to express an opinion that the management may take into account. Moreover, an issue is regarded as transnational in the new Directive when decision-making taking place in one country is related to a site in another country. The interpretation of the consultation and transnational concepts have led to a lot of discussions in EWCs and even to court cases in some instances. With this recast Directive the EWCs are expected to better be able to interpret the consultation process.

The Directive obliges the negotiating partners to further determine the linkages between national and European employee representation in the EWC agreement. It is also good news that the intended threshold for participation in de special negotiating body and the EWC according in the subsidiary requirements has also been abolished.

Another remarkable improvement is that in the Parliament and the Commission’s considerations about the infringement of the obligations arising from the Directive, adequate and dissuasive measures will be applied.

The EWC service is coming to see you!

We would like to come and explain the “recast Directive” to you one morning or afternoon. We can also map out what the possibilities are in your current EWC agreement. An exceptional opportunity to experience the expertise of our EWC advisors. The introductory fee for the service is EUR 990 (exclusive of VAT and transport). For more information, contact Meer informatie: Sjef Stoop tel. 06-52599048, John Snel tel. 06-52599070 or Teuny Huizer 0348-497271.

What does the new EWC Directive state literally?

In their “considerations” (which are also legally significant) the European Parliament and the Council of Ministers state that the internal market, i.e. the EU, goes hand-in-hand with concentrations, mergers and take-overs. The information and consultation of employees is needed for the “harmonious development of economic activities”.In order to ascertain whether an issue should be submitted to the EWC, the possible effects of it have to be examined and the relevant level of management and representation. An issue is “transnational” if it affects at least two Member States. The transfer of activities from one Member State to the other also qualifies as “transnational” in any event. In addition to these considerations, the main provisions from the recast Directive are as follows: the provision that only one meeting, and not two, like the European trade union movement would have liked, between the EWC and the management needs to take place remains unchanged. There are significant improvements in other provisions, such as the description of the cases that the employees have to be informed about, the right to facilities (including training) and the reinforcement of the position of the “Select Committee” (day-to-day running) of the European Works Councils.
Article 2, Definition of the concept of information:

“The transmission of data by the employer to the employees' representatives in order to enable them to acquaint themselves with the subject matter and to examine it; information shall be given at such time, in such fashion and with such content as are appropriate to enable employees' representatives to undertake an in-depth assessment of the possible impact and, where appropriate, prepare for consultations with the competent organ of the Community-scale undertaking or Community-scale group of undertakings.” Article 2, Definition of the concept of consultation:

“The establishment of dialogue and exchange of views between employees' representatives and central management or any more appropriate level of management, at such time, in such fashion and with such content as enables employees' representatives to express an opinion on the basis of the information provided about the proposed measures to which the consultation is related, without prejudice to the responsibilities of the management, and within a reasonable time, which may be taken into account within the Community-scale undertaking or Community-scale group of undertakings.”

Article 7, “Subsidiary Requirements”, i.e. the minimum requirements that the implementation laws of the Member States have to meet:

“The information of the European Works Council shall relate in particular to the structure, economic and financial situation, probable development and production and sales of the Community-scale undertaking or group of undertakings. The information and consultation of the European Works Council shall relate in particular to the situation and probable trend of employment, investments, and substantial changes concerning organisation, introduction of new working methods or production processes, transfers of production, mergers, cut-backs orclosures of undertakings, establishments or important parts thereof, and collective redundancies.”

“The European Works Council shall have the right to meet with the central management once a year, to be informed and consulted, on the basis of a report drawn up by the central management, on the progress of the business of the Community-scale undertaking or Community-scale group of undertakings and its prospects. The local managements shall be informed accordingly.”

“Where there are exceptional circumstances or decisions affecting the employees' interests to a considerable extent, particularly in the event of relocations, the closure of establishments or undertakings or collective redundancies, the select committee or, where no such committee exists, the European Works Council shall have the right to be informed. It shall have the right to meet, at its request, the central management, or any other more appropriate level of management within the Community-scale undertaking or group of undertakings having its own powers of decision, so as to be informed and consulted.

“Those members of the European Works Council who have been elected or appointed by the establishments and/or undertakings which are directly concerned by the circumstances or decisions in question shall also have the right to participate where a meeting is organised with the select committee.”

"The European Works Council or the select committee (…) shall be entitled to meet without the management concerned being present."

“The European Works Council or the select committee may be assisted by experts of its choice, in so far as this is necessary for it to carry out its tasks.”

“The central management concerned shall provide the members of the European Works Council with such financial and material resources as enable them to perform their duties in an appropriate manner.

In particular, the cost of organising meetings and arranging for interpretation facilities and the accommodation and travelling expenses of members of the European Works Council and its select committee shall be met by the central management unless otherwise agreed.”

Article 10, paragraph 1, means by which to have rights apply: “Without prejudice to the competence of other bodies or organisations in this respect, the members of the European Works Council shall have the means required to apply the rights stemming from this Directive, to collectively represent the interests of the employees of the Community-scale undertaking or Community-scale group of undertakings.”

Article 12, paragraphs 2 and 3, link between the EWC and other employee representation bodies in an undertaking:


“The arrangements for the links between the information and consultation of the European Works Council and national employee representation bodies shall be established by the agreement referred to in Article 6. Such agreement shall be without prejudice to the provisions of national law and/or practice on the information and consultation of employees.

Where no such arrangements have been defined by agreement, the Member States shall ensure that the processes of informing and consulting are conducted in the European Works Council as well as in the national employee representation bodies in cases where decisions likely to lead to substantial changes in work organisation or contractual relations are envisaged.”

The full text with the considerations and the Directive can be found on here (available in other languages than English).