Works councils
National works councils
Council Directive 2002/14/EC of 11th March 2002 was introduced to extend the requirement for works councils to a local and company level in all EU member states. This Directive applies either to undertakings employing at least 50 employees in one member state or establishments employing at least 20 employees in one member state. The deadline for incorporation into national legislation was 23rd March 2005, although transitional provisions existed for some member states such as the UK and the Republic of Ireland until 23rd March 2008.
Text of national works councils Directive
Information and Consultation Framework Directive
Summary of Great Britain's information and consultation regulations
Directive on worker information and consultation at a European
level (EWC Directive)
The European Works Council Directive (EWC Directive) was adopted by the Council of Ministers on September
22nd 1994. It was passed into national legislation on September 22nd 1996. A further directive bringing UK employees under the coverage of the information and consultation requirements became effective on January 15th 2000.
This was the third Directive to incorporate a requirement to inform
and consult the workforce.
Qualifying criteria
- An employer is required to establish an EWC if they employ at least
1,000 employees within the EU member states and at least 150 employees
in each of two member states. All employee numbers are calculated by taking
the average number for the previous two years (part-time staff are not
pro-rata)
- The 'controlling undertaking' for the purposes of the Directive shall
be any body which can exercise a 'dominant influence' over another undertaking.
This is automatic when more than half the share capital is owned by one
body
- Those organisations which had in place an 'agreed' mechanism for informing
and consulting their entire workforce on transnational issues when the
Directive took effect were excluded from compliance with the strict terms
of the Directive. (Article 13 Agreements).
- The EWC shall be established at a group level unless the management
and SNB (see below) agree, in writing, to establish more than one consultation
procedure
Establishing an EWC
- A 'qualifying' company must respond within a period of six months to
a written request from at least 100 employees (or their representatives)
in at least two undertakings/establishments in at least two different member
states.
- The first step will be to establish a 'special negotiating body' (SNB).
This shall have a minimum of three and a maximum of seventeen members.
All countries where the company has employees must be represented by at
least one member. Voting on the body will be decided by a simple majority.
- The SNB will work with 'central management' to determine, through written
agreement, the scope,composition, functions, and terms of office of the
European Works Council. The SNB may be assisted by experts of their choice
and may also decide, by two thirds majority, to terminate negotiations.
In such an event the SNB may not be reconvened for a two year period -
unless both parties agree an alternative period.
- All expenses required to convene the SNB and negotiate with central
management shall be borne by central management.
- Both parties must negotiate in 'a spirit of cooperation' with a view
to reaching an agreement.
- The final agreement shall contain
* a definition of the coverage of the EWC
* the composition of the EWC and terms of office
* the way in which information and consultation shall take place - including the
venue, frequency and duration of meetings
* the funding and staffing of the EWC
* the way in which employee representatives will be able to meet to discuss
theinformation conveyed to them
* the period covered by the agreement and procedure for its renegotiation.
- The information conveyed to worker representatives must be that relating
to particular transnational questions which significantly affect workers'
interests
- Where 'central management' fails to respond to a valid request within
a period of six months, or both parties are unable to conclude an agreement
within a period of three years from the date of the request, a default
agreement (set out in an annex to the Directive) shall automatically apply.
Limitations
- It is possible for management to withhold 'sensitive information'
which, if revealed, would 'seriously harm the functioning of the undertaking
concerned'. They are also able to require members of the SNB and/or EWC
to respect the confidentiality of certain information.
- Members of SNB's and EWC's are given the same protection under national
laws as those of other employee representatives. They have the
right to paid time off from work to carry out their duties.
Enforcement
- All national governments must have now put in place procedures to monitor compliance
and administrative/judicial processes to enforce the Directive.
- The European Commission carried out a review of the Directive, which was published during the spring of 2000. Although they recommended no change, the Council of Ministers has subsequently been under pressure from the European Parliament to make a number of fundamental amendments.
Example of EWC agreement
IBM European Works Council Agreement
Text of EWC Directive
EC Directive on employee information and consultation at a European level (European Works Councils Directive) Consolidated text (pdf)
National EWC legislation: key aspects
Austria
Selection of SNB/EWC representatives - Elected / nominated from members of the existing works councils or national company councils. Full time trade union officers may be nominated.
Use of experts in The SNB - Any experts the SNB thinks fit to consult. Central management foots the bill for experts.
Meetings of the SNB - Management must convene the first meeting.
Composition of the EWC - At least one per country. One additional representative for every country with 20% of workforce, three for 30%, five for 40%, seven for 50%, nine for 60%, eleven for 70% and thirteen where a country has 80%+ of workforce.
Meetings in exceptional circumstances - Meetings must take place immediately after the issue of a report from central management. The EWC must respond without any unreasonable delay.
Rights of EWC members - The legal protection afforded EWC members is the same as for national works council members.
Confidentiality - Members of the SNB and EWC are automatically bound by confidentiality. Central management need not reveal any information which might seriously damage the functioning of the company.
Belgium
Selection of SNB/EWC representatives - Nomination / election by employee members of the 'Conseil d'enterprise'. In the absence of that committee - the 'Comite de securite, d'hygiene et d'embellissement du lieu de travail'. In the absence of that further committee delegates from the trade union (after gaining clearance from commission paritaire). In the absence of all three parties by secret ballot of employees. Members will be employees, but exceptionally may be union officials.
Use of experts in The SNB - Experts chosen by the SNB. Central management must fund one expert.
Meetings of the SNB - Management takes initiative for first meeting.
Composition of the EWC - At least one per meeting. One additional representative for 10% of the workers in one country, two for 20%, three for 40%, four for 60%, five for 75%.
Meetings in exceptional circumstances - Meetings to be convened as soon as possible.
Rights of EWC members - EWC members must be given time and resources to inform local representatives. Belgian EWC members enjoy the same rights as conseil d'enterprise - especially in respect to attendance at meetings, pre-meetings and compensation.
Denmark
Selection of SNB/EWC representatives - Nomination / election by existing works council(s). In the absence of a WC trade union delegates. In the absence of both parties a secret ballot. The SNB and EWC may only have members who are employees.
Use of experts in The SNB - The SNB may use experts chosen by it. Central management must fund one expert.
Meetings of the SNB - A management initiative is required for the first meeting.
Composition of the EWC - At least one per country - but not more than thirty. Companies with less than 2,000 employees: One additional representative for the country with the most workers. More than 2,000 employees: One additional representative for every 25% of workers concentrated in one country. More than10,000 employees: One extra representative per 5,000 workers.
Meetings in exceptional circumstances - Meetings must take place as soon as possible - based on a report from central/other level of management.
Rights of EWC members - The same rights as trades union representatives.
Confidentiality - Central management's request must be adhered to in specified cases. Management may decide not to pass on information which may damage the interests of the company.
Finland
Selection of SNB/EWC representatives - If no agreement can be reached between employee representatives an election must take place from amongst the health and safety delegates.
Use of experts in The SNB - No reference is made to this issue.
Meetings of the SNB - No reference is made to this issue.
Composition of the EWC - The distribution of additional seats must be agreed by management and employee representatives.
Meetings in exceptional circumstances - Central management will draw up a report before a special meeting and the EWC may conclude a policy declaration.
Rights of EWC members - General protection assumed for those taking part in trade union activities.
Confidentiality - Reference to Finnish law on cooperation.
France
Selection of SNB/EWC representatives - Trade unions designate representatives from amongst their elected members on the company works council, or national works council (comite d'establissement). There are no provisions specifying whether SNB/EWC members must be company employees.
Use of experts in The SNB - The SNB may call on experts of its choice. Central management must fund one expert.
Meetings of the SNB - The head of the central management - or his/her representative - must convene the first meeting.
Composition of the EWC - 3 - 30 members. One additional member for countries with 20%-30% of workers, two for 30-40%, three for 40-50%, four for 50-60%, five for 60-80% and six for 80%+.
Meetings in exceptional circumstances - Management must provide EWC members with a report.
Rights of EWC members - Maximum time credit of 120 hours pa for the EWC Secretary and any members of a select committee. EWC time itself is not subject to limitation. Protection is the same as for all members of works councils.
Confidentiality - If management requests confidentiality it must be respected.
Germany
Selection of SNB/EWC representatives - Election / nomination by the three tiers of national works council in Germany - plant, company and group. Special provisions must be introduced if the works council structure does not cover the whole undertaking. Worker representatives (officers) may be nominated to the SNB.
Use of experts in The SNB - Any expertise considered appropriate. Central management is only obliged to fund one expert.
Meetings of the SNB - Central management will convene the first meeting. The SNB has the right to pre-meetings.
Composition of the EWC - At least one per country - with a maximum of 30 members. Companies with less than 10,000 employees: One extra member for countries accounting for 20%+ of employees, plus one extra for each country with 10% + and up to seven representatives where a country accounts for 80% + of undertaking. Where there are more than10,000 workers, one additional representative for 20% of workers, three for 30% locations, five for 40% locations, seven for 50% locations, nine for 60% locations, eleven for 70% locations and thirteen for 80%+ locations.
Meetings in exceptional circumstances - Central management must provide EWC members with written information, without delay. Copies of relevant source documents must be attached. It must begin consultation in good time and take any points of agreement into account.
Rights of EWC members - Relevant sections in company law are refered to (BetrVG), also the law on the protection of representatives against redundancy.
Confidentiality - Members, their substitutes and experts must respect confidential information revealed to them. If business or trade secrets are threatened management may withhold sensitive information.
Ireland
Selection of SNB/EWC representatives - By secret ballot, or by agreement between management and employees. Trade union officials may be nominated.
Use of experts in The SNB - It may use experts of its choice. Central management must fund only one expert.
Meetings of the SNB - Management must convene the first meeting.
Composition of the EWC - At least one per country. One additional representative for every 25% of workers in one country, with maximum of three additional representatives for countries accounting for 75% of workers (where one country is dominant).
Meetings in exceptional circumstances - Central management must prepare a report and convene a meeting as soon as possible. A collective position may be achieved at the meeting, or within a reasonable time thereafter.
Rights of EWC members - EWC members must be given reasonable facilities (including time off) to allow them to carry out their duties promptly and efficiently.
Confidentiality - Members and experts must respect the confidentiality of confidential information. Management may withhold data which may prejudice the economic, or financial, position of the company.
Netherlands
Selection of SNB/EWC representatives - Elected / nominated from members of plant, company or national works councils. Any election must be by secret ballot. Members must be company employees.
Use of experts in The SNB - The SNB may choose its own experts. Central management would normally cover the cost of the experts (one or more), but should be given advanced warning of the total financial outlay.
Meetings of the SNB - The first meeting will be convened by management. Pre-meetings are allowed.
Composition of the EWC - At least one per country. Undertakings with less than 5,000 employees - one additional representative where one country accounts for 25% of workforce. Undertakings with more than 5,000 employees - one representative for countries with 5% of total, two for 10% of total, three for 17% of total, five for 25% of total, seven for 50% of total and nine for 75% of total.
Meetings in exceptional circumstances - Management must issue a written report. The select committee may respond within a reasonable time after the special EWC meeting.
Rights of EWC members - EWC members may meet during working time without loss of salary to discuss problems relating to EWC subjects. They also have a right to receive training for their tasks. They are protected fully from dismissal and unfair treatment.
Confidentiality - Management may specify that material should be kept confidential. Central management has a right to withhold information if they believe that disclosure could seriously damage the company.
Norway
Selection of SNB/EWC representatives - Secret ballot by employees, or according to the normal rules for electing worker representatives. Members must be drawn from the body of employees.
Use of experts in The SNB - SNB may use any experts. Central management must pay for one expert, but may extend the number, where appropriate.
Meetings of the SNB - Management to take the initiative for the first meeting
Composition of the EWC - Between 3 and 30 members and at least one per country.
Meetings in exceptional circumstances - Meetings must be held as soon as possible following a report by central management. At the conclusion of the meeting the EWC may adopt a position.
Rights of EWC members - No special provisions. Application of the framework agreement between the Labour office and employers.
Confidentiality - All those present at SNB/EWC meetings must keep all that information confidential which is revealed to them by management on that understanding.
Spain
Selection of SNB/EWC representatives - This has to be agreed and achieved through the existing works council, or trades union structure - provided such bodies represent the majority of the workforce. Members of the EWC must be employees of the company.
Use of experts in The SNB - The SNB may call on the services of any expert. Central management must fund only one expert.
Meetings of the SNB - Management must convene the first meeting of the SNB.
Composition of the EWC - At least one representative per country. One additional representative for every 25% of workers in one country with maximum of three additional representatives for 75% of workers (where one country is dominant).
Meetings in exceptional circumstances - Management must send EWC members a report at an early enough time for objections to be made. A position may be agreed at the end of the special meeting or within seven days thereafter.
Rights of EWC members - An additional time credit is given to EWC members of 60 hours pa. The protection given is the same as for national trade union / works council representatives.
Confidentiality - No third party may receive information which has been specified as confidential. Secrecy rights apply only to certain sensitive production methods and strategic data on markets.
Sweden
Selection of SNB/EWC representatives - Where trade unions represent the majority of the workforce and have a collective agreement they will be responsible for nomination / election. If there is no collective agreement then the trade union with the majority of members makes the necessary nominations. Special provisions exist for exceptional situations. There is no legal requirement to elect only employees.
Use of experts in The SNB - Experts may be consulted. There is no restriction of company funding to meet their cost.
Meetings of the SNB - It is up to management to convene the first SNB meeting.
Composition of the EWC - At least one per country. One additional representative for every 25% of workers concentrated in one country with maximum of three additional representatives for 75% of workers (where one country is dominant).
Meetings in exceptional circumstances - Central management must draw up a report before the special meeting and the EWC may adopt a position in respect to it.
Rights of EWC members - The national laws protecting employee representatives are applicable.
Confidentiality - Both EWC members and experts may be required to keep certain matters confidential.
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