Thematic feature - works councils and other workplace employee representation and participation structures

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This article examines the Greek situation, as of September 2003, with regard to works councils and similar workplace employee representation and participation structures. It looks at the regulatory framework, statistical data, evidence on practice and the views of the social partners.

The issue of works councils and similar workplace employee representation and participation structures is topical at present, with the EU Member States required to implement the recent Directive (2002/14/EC) establishing a general framework for informing and consulting employees in the European Community (EU0204207F) by March 2005 (though countries which currently have no 'general, permanent and statutory' system of information and consultation or employee representation may phase in the Directive's application to smaller firms up until 2008). The Directive applies to undertakings with at least 50 employees or establishments with at least 20 employees (the choice is left to the Member States). It provides employees with the following rights to information and consultation:

• information on the recent and probable development of the undertaking's or the establishment's activities and economic situation;

• information and consultation on 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; and

• information and consultation, with a view to reaching an agreement, on decisions likely to lead to substantial changes in work organisation or in contractual relations.

Information and consultation arrangements set out in agreements between management and labour, including at undertaking or establishment level, may differ from those laid down in the Directive.

While the Directive does not stipulate that information and consultation must be provided through any particular channel or structure, it defines such information and consultation as taking place between the employer and the employee representatives provided for by national laws and/or practices. It is these representatives, who in most EU Member States sit on standing 'works council'-type structures (and in many countries already enjoy all or most of the information and consultation rights laid down in the Directive) that are the focus of this article. The existence of workplace employee representation and participation structures, based on law or widespread collective agreements, is seen in some quarters as a distinctive and important feature of the (mainland) European industrial relations model. Indeed, the idea has been raised of using the coverage of such worker involvement arrangements as an indicator of 'quality' in industrial relations (as suggested, for example, by the European Commission’s June 2001 Communication on Employment and social policies: a framework for investing in quality).

In this context, in September 2003, the EIRO national centres in each EU Member State (plus Norway), were asked, in response to a questionnaire, to provide information about the current situation with regard to national (rather than European level) works councils and similar bodies – the regulatory framework, statistical data (or estimates where not available), evidence on practice and the views of the social partners. The Greek responses are set out below (along with the questions asked).

Regulation

What is the legislative framework in your country concerning works councils and/or other workplace employee representation and participation structures? Please include here: definition; workforce-size threshold for establishment; composition/election; subjects for information, consultation and co-determination; conditions under which information, consultation and co-determination should take place (ie timing, methods, contents, level of representation, type of response by employees, form of interaction etc); meetings; confidentiality; protection of employees’ representatives. If there is no legislation on this issue in your country, please refer to widespread systems of works councils etc based on collective agreements.

Law 1767/1988, as amended and supplemented by Law 2294/1994, regulates the issue of works councils.

According to the provisions of the law (Article 1), works councils may be set up by the workers in a company that employs at least 50 workers, where a trade union organisation exists and operates in that company, or at least 20 workers, if there is no such trade union organisation. The institution of works councils does not apply to maritime workers in shipping companies.

Works councils are made up solely of employee representatives, with no management representation. Article 2 of the law specifies that works councils should consist of: three members in companies that employ, in the year elections are held, up to 300 workers; five members in companies that employ 301-1,000 workers; and seven members in companies that employ 1,001 or more workers.

The general assembly of the company's employees elects the works council, according to a procedure laid down in Articles 3-5 of Law 1767/1988. Works councils meet every month - or extraordinarily upon a request by one-third of their members - at the workplace or elsewhere, to be agreed with the employer.

The law provides for a broad spectrum of competences for works councils. For example (Article 12), they:

• decide jointly with the employer on matters concerning works rules, company health and safety rules and the scheduling of education and training;

• nominate workplace health and safety committee members; and

• study and suggest ways to improve productivity along with the terms and conditions of employment.

If there is disagreement between the employer and the works council over the regulation of the above matters, it is resolved by the Mediation and Arbitration Service (OMED) through a mediation procedure and referral to arbitration.

In terms of information and consultation rights, the law includes an obligation on the employer to inform the works council before implementing any decisions regarding matters such as:

• changes to the company’s legal status;

• the removal, expansion or downsizing of all or part of its installations;

• the introduction of new technology;

• any change in the staff structure;

• any increase or decrease in the number of employees, lay-offs or subsidised short-time work;

• the annual budget for company health and safety measures; and

• the scheduling of overtime exceeding maximum working hours.

Information should be provided promptly and clearly at regular intervals and/or extraordinarily upon request from the works council. The employer, however, is not obliged to inform the works councils on matters characterised as confidential by national legislation, and the members of the works councils are under an obligation not to provide to third parties, without the employer’s consent, information of particular significance which, if disclosed, would have adverse consequences for the company’s competitiveness (Article 13).

Article 14 of the law specifies that, where there is no company trade union, the works council must be consulted by the employer in cases of collective redundancies and/or in any other circumstances where national legislation provides for mandatory consultations with employees.

Works council members enjoy the same protection afforded to the executive councils of trade unions, and employers are not allowed to commit acts or omissions aimed at obstructing the exercise of their rights, such as influencing workers by using threats of dismissal or other methods, supporting workers’ candidacies by financial or other means and interfering in any way with the work of the general meetings. More generally, the status and activity of works council members may not constitute a reason for adverse treatment by the employer. On the contrary, employers should facilitate the work of council members by granting them leave to perform their duties and allowing them to enter all workplaces, as long as this does not hinder the operation of the company. The function of the works councils is participatory and consultative and is aimed at improving working conditions in conjunction with the growth of the company. This in no way negates the activities or the rights of trade unions, and agreements between employers and works councils cannot prevent the trade unions from seeking more favourable provisions (Articles 9-12).

Statistics

Please provide the most recent available statistics (in absence of statistics please provide estimates referring to sources) on the following (referring to other workplace employee representation and participation structures where works councils are not present and to widespread collective agreements on the issue where there is no legislation):

• the total number of employees and undertakings/establishments in your country;

• the total number of undertakings/establishments covered by the works councils legislation in your country and their total employment (data should be as much as possible disaggregated by gender, company size and sector);

• the total number of undertakings/establishments in your country which have established works councils and their total employment (data should be as much as possible disaggregated by gender, company size and sector).

Please provide any other national data indicating the number/diffusion of works councils.

In 1995 the Ministry of Labour conducted the most recent survey on the extent to which Law 1767/1988 had been implemented and extent to which workers and companies had responded to the creation of works councils. It found that there were 2,290 companies employing over 50 workers and 4,151 companies employing 20-49 workers, bringing the total number of companies in which works councils could potentially have been set up to 6,441. However, there were only 126 works councils in operation. Estimates placed the percentage of companies where works councils could have been established which had actually done so at 2%.

Practice

If there are any other statistical sources or recent research on the current practice of works councils or other workplace representation/participation bodies, please give details of the results paying attention to the issues covered by Question 1 (Regulation). Please provide as much quantitative data as possible - eg how many meetings and how often, chair, agenda, composition (eg how many representatives of management, if any, workers, proportion of women members, proportion of women as head of works councils etc) and identify factors of success. Please indicate how the works councils (or works council-type bodies) institution has evolved over the years.

The institution of works councils has not worked out as expected. On a practical level, the institution has been put to little use (see above under 'Statistics'). Aside from the fact that much confusion has been created over the role of works councils where unions exist and continue to claim many of the competences of the councils, the institution has not been utilised, even in smaller companies where it is more difficult to set up a company union. As a result, and as data from the Ministry of Labour attest, the vast majority of works councils are not functioning up to capacity.

Social partners

Please summarise the views of trade unions on works councils etc and their operation, and outline relations between works councils and trade unions.

From the moment the statutory framework for works councils first appeared in Greece, the unions have had reservations about them. Apart from unions' theoretical objections that works councils are elements in promoting class integration and cooperation, the introduction of the institution created confusion about the 'best' form of representation of workers and works' councils’ relationship to the traditional form of representation, the trade unions. Apparently fears arose over the boundaries of works councils' competences and the possibility that the unions might be replaced by the councils, when in fact the unions were seeking to take over a major part of the councils’ competencies. Furthermore, the low level of union density in the private sector created fears that actors from outside the unions would take over the works councils; however these fears have proved to be unfounded

Please summarise the views of employers’ organisations on works councils etc and their operation.

Employers have generally not taken a favourable view of works councils, being reluctant to recognise in practice participatory rights for councils that cast doubt on and oppose absolute managerial prerogative. It has been reported that some employers withhold important information from the workers’ side, using confidentiality as a pretext. (Anda Stamati, INE/GSEE-ADEDY)