Only British government refused its consent

The Council of Ministers agreed on the new Directive on European works councils on December 17th, 2008 in Brussels. On the day before the European Parliament had agreed in a plenary session with a large majority. The French Minister of Labour Xavier Bertrand (on the photo on the left, together with EU social Commissioner Vladimír Špidla) wanted to complete the procedure politically under the French Presidency in 2008. Since linguistic problems with the translation of the Directive could not be processed on time, the formal decision making will take place in a meeting of the Council of Ministers in January 2009.

26 governments from Bulgaria to Ireland from Portugal to Estonia accepted the compromise, only the British Labour government did not want to help to carry the bill. The U.S. position is fundamentally more pragmatic against this. The adoption of the Directive is welcomed particularly by the American Chamber of Commerce in Germany because of planning safety, so that transparency is guaranteed in the European branch offices of U.S. companies.

• Report from the meeting of the Council of Ministers

• Press release of the German Department of Employment (in German)

• Press release of the German Employers' Federation (in German)

• Report about the vote in the European Parliament

• Press release of the SPD group in the Bundestag (in German)

• Press statement of the German American chamber of commerce

A common recommendation of the trade unions and employers' federations of August 29th, 2008 had already paved the way to the new Directive (see report in EWC News 3/2008). On November 17th, 2008, the Committee on Employment and Social Affairs of the European Parliament then decided with the voices of Social Democrats, Greens, the Left and parts of its conservative members on several changes on the bill which meets trade union demands. On December 4th, 2008 the European Economic and Social Committee (EESC), a consulting committee from representatives of unions, employers and other groups, demanded an improved EWC Directive. Already in September 2006 EESC had voiced in favour of it.

• Assessment of the committee meeting of the European Parliament (in German)

• Press release of the EESC

• The EESC statement in the wording

Trialogue conversations brought about the breakthrough

There were informal conversations behind the scenes between European Commission, European Parliament and Council of Ministers at the beginning of December 2008. This so-called trialogue led to a compromise to which the unions too finally agreed. The new EWC Directive replaces the text from the year 1994 and has to be converted within two years into the legal system of all countries of the European single market. All EU countries as well as Norway, Iceland and Liechtenstein are included. Future EU countries like Croatia or Turkey will use the Directive as of the day of their joining.

• Press release of the social democrats for the trialogue conversations

• Detailed documentation of the revision procedure since 1999

Hamburg specialist conference to the new EWC Directive: What comes towards us there?

Many EWC members are not sure of the new legal situation and would like to design their current EWC agreement on the basis of the new Directive. Works council members who still have the EWC foundation ahead also would like to include the new regulations early in their considerations. A number of questions will arise not least also for lawyers if the new EWC Directive is converted in the national legal system.

The training and consultancy network " euro-workscouncil.net " offers the opportunity on January 26th, 2009 on an EWC specialist conference in Hamburg to discuss the new legal situation with experts from Brussels as well as from German science and practice in detail.

• Further information about the EWC specialist conference in Hamburg (in German)

Further specialist conferences to the new EWC Directive

The great response to this specialist conference has induced us to offer further dates. At present, the following events are in cooperation with partners in Italy and Belgium in the planning:

Rom, Villa Borghese, May 7/8th, 2009 (simultaneous interpretation German -- Italian available, English on request)

Liège in summer 2009 (an exact appointment will soon be fixed, simultaneous interpretation German -- French available, English on request)

German works council members can take part according to § 37, para. 6, Works Constitution Act. Non-binding reservations are already possible over the contact form. We then inform about the programme and the details on the participation on time.

Strengthening of the EWC only possible by negotiation

Relocations as in the case of Nokia (see report in EWC News 1/2008) are no longer possible in this form in future writes the German newspaper Handelsblatt under the heading "European works councils get more powerful". This is, however, only valid in a qualified sense, because all currently valid EWC agreements are operated on a continuation permit until they are discontinued. At first better regulations must be negotiated in every company. The legislator will improve merely the minimum regulations which are effective in the case of the breakdown of the negotiations. We have listed the most important points below.

• The Handelsblatt article in the wording (in German)

Information and consultation is defined better
The concept "information" is used repeatedly but not defined in the old EWC Directive. The new Directive names features which must be fulfilled in order to speak about a proper information. The consultation procedure is also described more exactly than before. In future European works councils shall be entitles to handle cross-border measures if a decision of central management has consequences in another country (as the SE legislation already provides for).

The role of the steering committee is strengthened

For the first time it gets the right to independent meetings and is increased personally.

Closer cooperation with national works councils

Since the European works council is only responsible for transnational issues, its work must be better linked to the national works councils. This also includes the duty of EWC members to report to the staff of its country of origin.

Right for training

For the first time a legal right is confirmed legally on training measures.

Renegotioation of EWC agreements at mergers

In future there will be the right to terminate and renegotiate older EWC agreements at mergers and extensive restructurings.

Effective and deterrent sanctions

The wording that all countries must provide " effective, dissuasive and proportionate sanctions " in their respective EWC laws if the rights of the European works council are violated is part of the most important points. This can be an injunctive relief as it was already succeeded in the case of the European works council of Gaz de France in front of the court (see report in EWC News 1/2008). A powerful European works council does not come along as a "present from Brussels" but only by courageous workers' representatives, who if necessary call in their rights also in front of the court. Remarkable: In Germany there isn't any single verdict, which relates to the rights of an EWC. So it remains much to do for works councils.

• The new EWC Directive in the wording

• Summary of the most important changes (in German)

Special problems for British European works councils

There isn't any tradition of information and consultation in the United Kingdom, works councils are a cultural alien element both for British trade unions and for the management differently than in the continental EU countries. Till now there is a large number of European works councils on the basis of British law, the quality of these agreements however stays frequently behind the continental standards. Good EWC regulations can only be found in companies with a high degree of trade union membership.

During the revision process British government had benevolently accompanied the employers' lobby campaign against the new Directive (see report in EWC News 3/2008), although Labour members of the European Parliament supported the trade unions' position. It is up to the national parliaments now as they fill the new regulations with lives. While there is a good chance in many old EU countries (France, Benelux, Germany, Scandinavia) for clear decisions of the legislator, an implementation in conformity with the EU is expected particularly in the United Kingdom with tension. One will have to watch very considerably also in some Eastern European countries how the parliaments handle this topic. Shall the violation of EWC rights remain a peccadillo or draw hard conclusions in front of the court? It will be decisive whether effective and deterrent sanctions of the workers' representatives can be sued for also in front of British or Polish courts. 

• Background: Information and consultation in the UK and Poland (in German)

• Presentation: European works councils in the UK

• Case study to the legal personality of British European works councils

• Interview with the EWC coordinator of the British TUC

Staff cuts after merger of tobacco groups

Workers' representatives of Imperial Tobacco met in Brussels on October 10th, 2008 to develop a common strategy against the announced reduction of 2,600 jobs. The restructuring was published by central management in Bristol in July 2008, it is a result of the merger with Altadis. The Spanish tobacco company had been bought up by Imperial Tobacco in February 2008. The announcement of staff reductions led already to strikes in France and Spain.

At present, there are two European works councils in the group. Imperial Tobacco had founded an EWC according to British law in 1996 and Altadis in 2002 an EWC according to Spanish law. Both now shall be brought together to one single council. In the opinion of the trade unions it is required that the EWC of Imperial Tobacco takes part in all EWC meetings of the steering committee of Altadis as of now to ensure a coordinated strategy.

• Press release about the planned restructurings

European-wide action day at HP and EDS

Workers' representatives of the two IT firms Hewlett-Packard (HP) and Electronic Data System (EDS) met in Brussels on October 15th, 2008 to analyse the joined EWC meeting of September 25th, 2008 (see report in EWC News 3/2008). HP had taken over the competitor EDS in August 2008. Workers' representatives criticize that central management violates the EWC Directive because it confronts the two European works councils with perfected facts and doesn't carry out any consultation. The aim of consultation for the two works councils is to take on negotiations about the restructuring.

As a reaction to the cut of almost 10,000 jobs due to the merger, the highest reduction in the history of both companies, workers' representatives of HP and EDS organized a European-wide action day on November 13th, 2008. After that central management agreed to the legally specified consultation procedure, but refused to mention exact numbers about dismissals or to specify the plans per country more exactly. Workers' representatives of both enterprises discussed the further procedure on December 8th, 2008 in Brussels. The behaviour of HP central management reminds strongly of the electronics company Alcatel-Lucent where the EWC had obtained a judgement in April 2007 (see report in EWC News 2/2007).

• The demands of October 15th, 2008

• Photos and reports of the action day in France (in French)

• Further country reports on the action day

• Press release after the meeting of December 8th, 2008

Bank works councils discuss merger

Representatives of the European works councils of BNP Paribas and Fortis met in Paris for the first time on October 20th, 2008 to discuss the forthcoming merger. The largest French commercial bank BNP Paribas wants to take on all activities of the Belgian Luxembourg finance group of Fortis outside the Netherlands as a result of the financial crisis. The Dutch part of Fortis had been nationalized on October 3rd, 2008.

From an economic point of view the merger would make sense as both banks complete each other geographically, so the workers' representatives. They demanded however the development of a social chapter in the context of the merger contract. The European works council of Fortis which had been founded according to Belgian law in 1996 was officially informed about the merger in a plenary session on November 20th, 2008. Presumably it will soon be combined with the EWC of BNP Paribas also founded in 1996 according to French law. Shortly before Christmas the merger plan led to a governmental crisis in Belgium. The following documents are available only in French:

• Press release of the two European works councils

• Further information about the EWC of BNP Paribas