A company union is a trade union created and/or controlled by the company itself, which responds to its own interests instead of those of the workers. In some countries, it is referred to as a ‘yellow’ union. Companies use this form of union to take control of works councils as a means of eliminating conflicts and ensuring that measures are approved without opposition.

The International Labour Organization prohibits the establishment of such unions (ILO Convention 98, article 2). Furthermore, in terms of EU regulation, company unions infringe Directive 2002/14/EC:

When defining or implementing practical arrangements for information and consultation, the employer and the employees’ representatives shall work in a spirit of cooperation and with due regard for their reciprocal rights and obligations, taking into account the interests both of the undertaking or establishment and of the employees.

However, in some EU countries, such as Denmark, the number of members of company unions have been growing; examples of such cases include Krifa and Det Faglige Hus.

• EUR-Lex: Directive 2002/14/EC of the European Parliament and of the Council of 11 March 2002 establishing a general framework for informing and consulting employees in the European Community , 11 March 2002
• Eurofound: Denmark: Increase in membership of ‘yellow unions’ , 27 May 2016

See also: employee representation ; European works councils ; freedom of association ; information and consultation ; trade unions.