UK reaction to European Parliament's vote to strengthen employee consultation Directive

The decision by the October 2001 plenary session of the European Parliament to support amendments strengthening the requirements of the draft EU employee consultation Directive received a mixed reaction in the UK. Trade unions welcomed the move but employers and the UK government expressed concern at the implications of the proposed changes.

On 23 October 2001, the European Parliament (EP) adopted a series of amendments to the Council of Ministers' common position on the draft EU Directive establishing a general framework for informing and consulting employees in the European Community, intended to strengthen its requirements (EU0110206F). The move received a mixed reaction in the UK. Trade unions welcomed the proposed amendments but employers and the UK government expressed concern at their implications.

MEPs debated and voted on a report adopted earlier in the month by the EP Employment and Social Affairs Committee. This proposed a wide-ranging list of amendments to the Directive, including tougher sanctions for non-compliance, enabling the suspension of decisions taken by employers in breach of their information and consultation obligations.

The Confederation of British Industry (CBI) attacked the Committee's proposed amendments as 'highly damaging'. John Cridland, the CBI's deputy director-general, said: 'They could grind business decision-making to a halt and undermine the ability of managers to manage.' The CBI vowed to lobby MEPs vigorously in a bid to get the proposed amendments dropped. David Yeandle of the Engineering Employers' Federation said the Committee's report 'confirms our worst fears'.

However, John Monks, general secretary of the Trades Union Congress, said in a statement: 'This over-reaction by British companies shows how out of step they are with the European mainstream. These amendments had political support from parties of left and right in the European Parliament. Anything that makes boardrooms pause for thought and consultation makes for better business decisions.'

In a briefing for MEPs from the UK, the Department of Trade and Industry (DTI) said that the UK government '[did] not wish to see amendments to the Council common position text, which the UK supported and which was the result of long and difficult negotiations'. The briefing stated that the Employment and Social Affairs Committee's draft amendments 'would pose serious difficulties for UK business and concern areas where we have no room for manoeuvre'.

In the event, although MEPs endorsed the bulk of the amendments proposed by the Committee, the key amendment on sanctions received insufficient votes to be adopted (EU0110206F). The CBI welcomed the rejection of this proposal but said that it remained 'deeply concerned' by the EP's amendments in other areas. The CBI said that it would work closely with the UK government to prevent them being adopted by the Council of Ministers. The DTI was quoted in the Financial Times as saying the EP's amendments were 'unnecessary and unhelpful'.

Though thought to be disappointed at the failure of the amendment calling for tougher sanctions, the TUC issued a statement welcoming the amendments adopted by MEPs, which it said would 'help make the information and consultation Directive effective in workplaces across Europe'.