Trade unions have a fundamental interest in promoting more democracy at the workplace and sustainable EU governance. The coming years will be difficult for workers. The current economic context leads to more frequent changes in company strategies, including greater recourse to restructuring. Workers and their representatives must be given a place and a voice in these strategic decisions [1].

In this Resolution the ETUC calls for a radical change of approach in EU policy. EU company law currently overemphasises businesses’ and shareholders’ needs to the detriment of the interests of workers and other stakeholders. Furthermore, promoting regime competition and short-termism is not sustainable in the longer term. EU company law should focus on promoting a coherent, sustainable and forward-looking corporate model, including an EU framework instrument on workers’ involvement. Major questions can also be raised about the real purpose and effect of the current better regulation agenda.

The ETUC reiterates its demand for a meaningful consultation on policy orientation. A more active involvement on the part of European Social Partners in the shaping of EU company law policy would greatly contribute to unblock numerous deadlocks. Online consultations and Green Papers are not an adequate substitute for the specific consultation of the social partners, which is foreseen in the European Treaties.

Reforming European company law in the interests of workers and other stakeholders will not be an easy task. The ideologies of shareholder value and regime competition have fundamentally shaped the EU company law acquis. But the financial crisis has clearly demonstrated the need for change.

However, Social Europe and a sustainable economy cannot be realized simply by hoping that the crisis will pass soon and the economic recovery will put us on the right path. The demands discussed above, together with the list in the annex of existing EU company law directives and where they need to be reformed, provide a roadmap for fundamental change in how our companies operate and are regulated. In order to achieve a democratic and social Europe, it is crucial that workers and their representatives are not excluded from the political process. The relationship between companies and society has become unbalanced in favour of the former. But companies need to serve society, rather than society serving the shareholders. A proper balance can be achieved only by fully including trade unions in the process of change.

ETUC Resolution for download

To download the ETUC Resolution and its 2 annexes, please click on the icon below.