Europe: European Works Councils reform

In the Renewed Social Agenda adopted today by the European Commission there are proposals for the reform of the legislation governing European Works Councils. A draft directive has been published and in its press release the Commission provides the following information:

The 1994 Directive (94/45/EC) requires Member States to provide for the right to establish European Works Councils in companies or groups of companies employing at least 1000 people in the European Union and the other countries of the European Economic Area (Norway, Iceland and Liechtenstein), with at least 150 employees in each of two Member States.

While European Works Councils have been successful in many areas, they cannot fully play their role in anticipating and properly managing change and in developing genuine cross-border social dialogue. Indeed, European Works Councils are not properly informed and consulted in half of the transnational restructuring cases and the take-up of European Works Councils needs to be increased.

The 1994 legal framework on European Works Councils therefore needs to be adapted to changes in the legislative, economic and social context, where the cross-border dimension proves more and more important, and to be clarified on different aspects".

Note: The 1994 Directive did not apply to the UK because of its opt-out from the Social Chapter.  When the opt out ended, Directive 97/74/EC extended the Works Councils framework to the UK.

For further information see:

Works Councils press release | Draft directive | Renewed Social Agenda website | Directive 94/45/EC | Directive 97/74/EC |