Move to strengthen European Works Councils takes step forward

More effective future control over the actions of multinational companies has become more likely following decisions in key EU institutions recently.

On 21 May, the Council of the European Union, representing the governments of EU states, and the directly elected European Parliament, reached provisional agreement on a new directive that will strengthen the existing law on European Works Councils (EWCs).

And on 5 June the proposal was backed by a substantial majority in the employment and social committee of the European Parliament.

There are around 1,200 EWCs — which can be set up in companies with at least 1,000 employees in the EU operating in at least two EU member states — and they have information and consultation rights.

However, weakness in the existing legislation means:

• It is often unclear what they can discuss

• Companies try to keep too much information confidential

• EWCs frequently have no access to justice

• Penalties on companies for ignoring the legislation are often minimal

The new directive is intended to change this, as well as improving gender representation in EWCs.

The European Trade Union Confederation (ETUC) has welcomed the progress, much of which draws on its own proposals, but wants a rapid conclusion.

ETUC deputy general secretary Isabelle Schömann said: “European Works Councils are key to ensure the effective exercise of democracy at work.

“This revision of the directive must ensure that their rights are not just formalities, but enforceable tools.”