New agreement to improve consultation of workers in international affairs.

Parliament and Council negotiators have reached a provisional agreement to improve the functioning of European Works Councils and strengthen their role.

European Works Councils (EWCs) represent EU workers in large multinational companies that operate in at least two EU or European Economic Area countries. They are designed to ensure that workers receive proper information and can have a dialogue with central management on decisions taken at EU level that could affect their working or employment conditions.

 

The provisional agreement updates the current rules by clarifying the definition of “transnational matters”. MEPs insisted on the text strengthening workers’ rights by making sure that experts assisting EWCs, including trade union representatives, can attend management meetings in an advisory capacity. EWCs have to aim to have at least 40% of their seats are allotted to members of either gender.

Improving consultation rights

Companies will have to provide easier access to information and justify why they are refusing to share information or why information has to remain confidential in certain cases. The new rules also improve workers’ consultation rights by ensuring that prior to the adoption of a decision affecting them, their representatives can be consulted. Parliament negotiators secured the right for EWC to meetings with central management in person at least twice a year to discuss the company’s progress.

Penalties

The co-legislators have strengthened the rules when it comes to financial penalties – making sure they are dissuasive – sanctions, and access to justice when consultation and information rights are harmed.

Quote

Rapporteur Dennis Radtke (EPP, DE), said: “We don’t want to reinvent the wheel: we just want to strengthen existing rights, simplify procedures, and close the gaps that have repeatedly caused frustration in practice. Employee participation is not an obstacle but a key success factor – especially in the context of the digital and green transitions. Companies benefit from committed employees who are involved on an equal footing. When companies operate at European level, worker participation must also take place at European level. With this reform, we are strengthening Europe’s social dimension Europe and bringing democracy to the workplace.”

Next steps

Both the Parliament and the Council need to adopt the provisional agreement formally before the rules can enter into force.

Background

Currently, EWCs and other forms of transnational information and consultation exist in around 1 000 multinational companies, representing approximately 16.6 million EU employees. EWCs can issue non-binding opinions on management decisions on transnational matters relating to any topic affecting workers’ employment conditions.

EWCs were originally introduced in 1994 by a directive that was updated in 2009. In February 2023, Parliament adopted a legislative resolution calling on the Commission to revise the 2009 EWC Directive on European Works Councils by 31 January 2024 and to strengthen the EWCs’ role, as the current rules fell short on ensuring democracy at work and enabled information to be restricted on the basis of confidentiality rules.

More information: European Parliament.