CORPORATE EMPLOYEE PARTICIPATION EU Law ______________________________________________________

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CORPORATE EMPLOYEE PARTICIPATION EU Law
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• Information and Consultation Framework Directive
  EC 2002/14
• National level (Member State) scope
• long history, hard opposition
• event driven and process driven
• into force 3/2005
• Slides 1-5
• ..................................................
  ..................................................
  ..
• European Works Council EC Directive 94/45,
• - long history, hard opposition
• trans-national scope
• Slide 6-15

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Information and Consultation Framework Directive
EC 2002/14

• Scope of application
• Number of employees in any one member state ...
• information and consultation shall cover ...
  Article 4(2)
• information on recent and probable development of
  the undertakings activities and economic
  situation
• the situation, structure and probable development
  of employment within the undertaking and on any
  anticipatory measures envisaged, in particular
  where there is a threat to employment
• I C decisions likely to lead to substantial
  changes in work organisation or in contractual
  relations, including ... Article 9(1)
• a-b) process driven and c) single event driven

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Information and Consultation Framework Directive
EC 2002/14

• Forms for information and consultation, Article 4
• Aiming at a real dialogue with a possibility for
  the employee side to prepare properly for the
  consultation,
• Consultation shall take place
• with appropriate timing, method and content
• at the relevant level of management and employee
  representation
• in a way that enables employees representatives
  to meet the employer and obtain a response, and
  the reasons for that response to and opinion they
  might formulate
• with a view to reach an agreement ...

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Information and Consultation Framework Directive
EC 2002/14

• Confidential information (Article 6) weighing
  two principles
• Protection of employees representatives
  (Article7)
• Protection of rights (Article 8)
• Flexibility Directive ? Member State statutory
  provisions? with a possibility to reshape by
  agreement between labour and management on
  national level and corporate level Article 5)
• Who should be informed/consulted the question
  of representation

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Information and Consultation Framework Directive
EC 2002/14

• Scandinavian patterns (Örjan Edström in final
  exam litt.)
• the role of collective agreement regulation
• legislation with optional rules (especially SE
  and FIN)
• works councils or joint councils bipartite
  bodies
• trade unions and representation
• issues for the involvement of employees
• goals
• trade union representatives

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European Works Councils law in books

• Background
• The starting point trans-nationalization of
  undertakings and at the same time participation
  on a national level
• The ambitions of the EU Commission and
  conflicting views
• The Directive. Objective. Improve the right to
  information and consultation with regard to
  transnationalization
• (IC) in undertakings, groups of undertakings
  that are of Community Scale (Article 1(1)

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EWC Directive Scope of application

• Applicable to undertakings or groups of
  undertakings when the Community-scale
  undertaking in question has
• at least 1 000 employees within the Member
  States, and
• at least 150 employees in each of at least two
  Member States. (Article 2(1)(a)

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Alternative Obligations

• A European Works Council,
• or a similar procedure for the purpose of
  informing and consulting the employees
• must be established in all companies to which the
  directive applies.
• Article 13 Pre-existing agreements remain in
  force
• Priority for negotiated solutions
• In case of non agreement subsidiary minimum
  standard apply

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Mechanism to Establish an EWC

• Initial stage Parties
• Special negotiating body (SNB employee
  representatives)
• Central management
• gt 1) and 2) agreement on principles for setting
  up a EWC
• Secondary stage Parties
• 1) EWC and 2) Central management

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The agreement on a EWC must cover

• undertakings included
• the composition of the EWC
• procedure for information and consultation of EWC
• venue, frequency and duration of EWC meetings
• financial and material resources
• the duration of the agreement
• Alternatively an agreement on an informing
  consulting procedure
• If no agreement on a EWC or ICP, then the
  mandatory provisions laid down in the annex are
  triggered at the second stage.
• Member States can
• decide practical matters i.a. election methods
• encourage the Social Partners to agree upon the
  details of the operation of the agreement.
• ? Possibility to accommodate local requirements.

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Agreements / directive Member State Legislation

• Voluntary agreements (Article 13). If on the
  22nd of September 1996 there existed a relevant
  agreement which covered all the workforce ?
• the Directive did not apply.
• When these agreements expire(d) the parties can
  (could) decide to renew them. If they fail to do
  so the provisions of the directive will apply.
• The agreements as primary rules / the directive
  and the corresponding legislation as secondary
  rule but certain minimum requirements
• Convergence rather than harmonization
• Flexibility carrot and stick

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Additional features

• in a spirit of cooperation their reciprocal
  rights and obligations
• No mandate for industrial action, international
  solidarity ? Member State legislation
• No distinction between different categories of
  employees
• Special issues
• Confidential information
• Protection of employees representatives
• Legal status of agreement

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European Works Councils in practice - law in
action

• Reports, Surveys, Paths to progress
• Based on case studies and other material
• Diversity no simple typology of EWCs
• Fundamental factors for the development of EWCs
• The advantages and benefits of EWCs /
  disadvantages?
• The extent of information
• Providing employees with a voice in corporate
  decision-making?

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European Works Councils in practice (cont.)

• Employee representatives - complaints?
• National interests / European focus
• EWCs that meet the formal requirements / EWCs
  with a functioning dialogue
• EWCs with a clear strategy both on the employee
  side and the management side
• A crucial factor for the development of EWCs -
  the internal social cohesion, example, the VW
  case

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European Works Councils in practice (cont.)

• Interactions
• between employee representatives and management
• employee representatives from different countries
• EWCs do not slow down corporate decision-making
• new channels of communication, initiating
  innovative processes of company-level relations