Around 10 million workers have the right to information and consultation on company decisions at European level through their EWCs. The current EU legislation presents fundamental weaknesses. The ETUC calls for substantial improvements of the EWC directive.
The latest internationalisation of labour markets has had huge impacts on employment & working conditions. Today workers are often employed by a company with its strategic decision-making centre in another EU country. Crucial strategic decisions are no longer taken by national management only, but in European or global headquarters. These circumstances often hamper worker representation and social dialogue at the international level. The ETUC calls for a mechanism to ensure that workers’ rights to be informed and consulted are effectively respected.
What’s an EWC?
When a company is established in several EU countries, the EWC represents the workers of the company in meetings with central management. They bring together at least one representative from each EU country in which a multinational company operates. During EWC meetings, these representatives deal with all questions that concern the company as a whole or at least 2 member states.
Directive 94/45/EC is the legal basis for EWCs. It applies to transnational undertakings and groups of undertakings employing more than 1000 employees in the European Economic Area (EEA), and at least 150 of them in 2 member states.
In 2009, a recast EWC directive was adopted (2009/38/EC). Although it contains some important changes as to the definitions of information, consultation and transnational issues, it is still far from being complete. The proper European Commission’s evaluation of the Recast Directive identified multiple problems with the functioning of EWCs, but this hasn’t been translated into a willingness to improve legislation. Some of the weaknesses of the recast directive are:
Employers can easily stall or completely block the establishment of an EWC.
EWCs are often informed after final decisions have already been taken.
Confidentiality clauses are often misused by management to withhold information.
MEP Dennis Radtke (EPP) will draft a Report on the Revision of the EWC Directive in 2022. The ETUC has started an ad hoc Working Group to steer the report into the right direction.
The ETUC position
EWCs continue to be confronted with a done deal, especially in the event of transnational company restructuring. Necessary advances are impossible without a substantial improvement of the EWC Directive. Digitalisation won’t wait and EWCs must have the means to shape it. After 10 years of practices and evidence gathering, it is time to act – to act now & at EU level.
The recent European Parliament Report on Democracy at Work also included most of the ETUC's demands on a revision of the EWC Directive. It already paves the way for the report of MEP Dennis Radtke on the revision of the EWC Directive by stressing - amongst other - the need for effective enforcement.
The European Trade Union Federations (ETUFs) and their member organisations provide practical support, advise and training to EWC members on a daily basis. Especially in times of crisis, such as the COVID-19 pandemic and its aftermath, support and monitoring have been scaled up. In this context, please find below joint European Trade Union Federations’ recommendations to EWC/SE Coordinators and worker representatives in SNBs, EWCs and SEs for:
managing the impact of Brexit on multinational companies
Once a year the ETUC organises the annual EWC conference with EWC representatives from all over Europe – a unique opportunity to exchange with colleagues and European decision-makers. Find the streaming of the EWC conferences in 2019, 2020 and 2021 (Day 1) (Day 2).
The ETUC organises & coordinates specific events targeted towards the European institutions to push for a revision of the EWC directive. Such events aim at increasing the exchange with the European Commission, the European Parliament and national governments.
The ETUC – in close cooperation with the ETUI and the European Trade Union Federations – also offers a series of trainings to EWC members and workers’ representatives. These workshops deal with key issues and challenges for EWC members such as litigations, workers’ rights in restructuring processes.