Government seeks views on EWCs ahead of review of Directive

In July 2003, the Department of Trade and Industry published a discussion paper on the UK experience of European Works Councils (EWCs). Its aim is to gather information and views to help the UK government prepare for the forthcoming EU-level discussions on the possibility of revising the EWCs Directive.

On 7 July 2003, the Department of Trade and Industry (DTI) published a discussion paper, The UK experience of European Works Councils, seeking views on how European Works Councils (EWCs) set up by UK-based companies have been working in practice. The principal aim of the exercise is to build up a 'stronger evidence base' from which the UK government can develop its approach to the EU-level discussions on the possibility of revising the 1994 EWCs Directive (94/45/EC), which are due to get underway later in 2003. The European Commission has indicated that it will begin consultations with EU-level trade unions and employers’ organisations on the revision of the Directive in the autumn, raising the prospect of amendments to the Directive being brought forward sometime in 2004 or 2005.

The discussion paper outlines the main features of the EWCs Directive and the UK’s Transnational Information and Consultation of Employees Regulations (TICE) 1999 (which implemented the Directive - UK0001146N), as well as the background to the proposed Commission review. The paper notes that the enlargement of the EU in May 2004 (EU0301201N) will in any event have an impact on the application of the EWCs Directive, in that multinational companies’ operations and employees in 10 new EU Member States will count towards the Directive’s qualifying thresholds and bring more companies within its scope.

The paper includes a brief review of the operation of EWCs within UK-based companies to date, and asks for further information from respondents concerning their own experience of EWCs, in particular details of their size, frequency of meetings, subjects discussed, costs of operation, duration of agreements and procedures for renewing or terminating them, as well as general views on what makes for an effective EWC and what are the obstacles to this.

The discussion paper states that, to date, 'there has been relatively little demand from UK stakeholders for changes to the Directive'. However, the government says that it will 'look at any possible changes to the Directive from a pragmatic point of view, focusing on how to make the Directive a more effective tool for transnational information and consultation. As with other legislation in this field, the government’s key aim is to strike the right balance between providing effective rights for employees to be informed and consulted, without creating undue or unnecessary burdens on business'.

The discussion paper goes on to canvass opinion on the main proposed amendments to the Directive that have been put forward by bodies such as the European Trade Union Confederation (EU0212208F) and the European Parliament, and seek views on issues such as:

• changing the Directive’s employment thresholds;

• changing the 'special negotiating body' procedure;

• whether there should be specific provisions that apply in the event of restructuring;

• how more innovative EWC agreements can be fostered;

• whether there should be any changes to the subsidiary requirements;

• whether EWC representatives should have a right to time off for training;

• strengthening the Directive’s provisions on sanctions; and

• changes of a deregulatory nature.

The discussion paper states that the government is also willing to consider proposals for the amendment of the UK’s TICE Regulations. The government notes that: 'One area that has already been highlighted concerns the ability of the EWC to bring a complaint to the Employment Appeal Tribunal (EAT). Regulation 21(3) of the TICE Regulations refers to the EWC being a 'relevant applicant' in the context of a complaint to the EAT. However, it is not clear whether that means that all members of the EWC must agree to a complaint. Given that an EWC will often include representatives of management, that may well preclude such a complaint being made. We would welcome views on whether this is a practical problem that needs to be addressed or on any other aspects of the Regulations that could be improved.'

The deadline for responses to the DTI’s discussion paper is 7 October 2003.