Adopted at the Executive Committee Meeting of 27-28 September 2023
In its legislative-initiative resolution[1] adopted by a large majority on 2 February 2023, the European Parliament called on the Commission to revise the European Works Council Directive[2] with the aim of strengthening European Works Councils (EWCs) and their ability to exercise their right to information and consultation.
On 1 March 2023, the Commission welcomed the European Parliament's initiative and announced a legislative proposal to revise the EWC Directive. However, according to Article 154 of the TFEU, it must first consult the European social partners in a two-phase procedure. Following this, it launched the first phase of the social partner consultation on a possible revision of the EWC Directive[3] on 11 April 2023 .
In its response[4] to the first consultation paper, the ETUC already clearly stated that it strongly welcomes the Commission's initiative. In the ETUC's view, the EWC Directive is not fit for purpose. Unclear definitions of legal terms, non-deterrent penalties and ineffective access to justice mean that some of the EWC's information and consultation rights intended by the legislator only exist on paper. The ETUC therefore advocated at an early stage for the EWC Directive to be strengthened by means of a legislative binding initiative in such a way that the rights enshrined therein are effectively applied and enforced.
The ETUC already criticised the Commission's approach in the first consultation phase to examine possible negative effects of a revision on employment or industrial activity in its evaluation. In their response to the first consultation phase, employers' organisations such as BusinessEurope and CEEMET used the argument of the alleged negative impact of effective information and consultation rights on the already crisis-stricken companies in Europe, without however providing any evidence. As rightly pointed by the European Commission as well as by multiple international organisations nowadays (e.g. the OECD[5]), social dialogue, including collective bargaining and information-consultation at the workplace, helps shape transitions towards competitive economies delivering quality jobs. In the context of digital and green transitions of an unprecedented scale, the effective exercise of democracy at work by involving workers in the strategic decision-making processes plays a crucial role in protecting workers’ rights, quality jobs and working conditions, ensuring companies’ and public services’ long-term sustainability and fair anticipation and management of change.
Strengthening democracy at work is first and foremost a contribution to strengthening the democratic foundation of the EU. The EU is a Union founded on respect for and the strengthening of common values, in particular human dignity, freedom, democracy, equality and the rule of law. These values are expressed, among other things, through the involvement of workers in the decision-making of their company. Therefore, these fundamental rights must not be played off against the expense they may incur. Furthermore, a range of scientific evidence shows that democracy at work has a positive impact on the competitiveness and resilience of companies[6]. The ETUC therefore explicitly welcomes the fact that the Commission in the accompanying analytical document finds no negative impact on competitiveness and even concludes that companies with an EWC would perform better in many important areas than companies without an EWC. This could lead to a strategic advantage with relevance for competitiveness. In this context, it should be recalled that only companies with at least 1000 employees fall within the scope of the Directive and that, according to the Commission, the average cost is only 0.009% of annual turnover. The changes or clarifications of already existing provisions discussed by the Commission on the basis of the demands of the European Parliament would most probably only lead to marginal changes here if any.[7] The employers' cost argument is thus completely unfounded.
On 26 July 2023, the European Commission launched the second-phase consultation of the social partners on a possible revision of the European Works Council Directive (Directive 2009/38/EC). The consultation documents are composed of a letter to the social partners, a consultation document[8] and a staff working document[9]. The Commission invites the European social partners to answer the following questions:
- What are your views on the objectives of possible EU action set out in Section 5.1?
- What are your views on the possible avenues for EU action set out in Section 5.2?
- What are your views on the possible legal instruments presented in Section 5.3?
- Are the European social partners willing to enter into negotiations with a view to concluding an agreement under Article 155 TFEU with regard to any of the elements set out in Section 5.1?
The ETUC welcomes the general direction of the consultation document, recognises serious efforts by the Commission to strengthen EWC information and consultation rights and their enforcement and is happy to respond on the questions below.
The ETUC stresses that a wide range of robust studies and disciplines have already delivered compelling evidence of the need to improve the EWC Directive. Throughout the Commission’s consultation document the ETUC notes several references to an “ongoing evidence gathering" to “complete the analysis”. With respect to the additional research conducted on behalf of the Commission directly, the ETUC requests transparency to be provided at the earliest convenience to all social partners about the methodology used (including the objective criterion for the selection of company cases or interviewees) and the necessary neutrality of the authors.
For the sake of clarification, the ETUC would like to point out that when talking about national workers’ representatives in this response, the ETUC means trade unions or the workers’ representatives as provided for by national law or practice, thereby fully recognising and respecting the prerogatives of trade unions and their representatives.
To read the full text please find the attachment.
[1] European Parliament resolution of 2 February 2023 with recommendations to the Commission on Revision of European Works Councils Directive (2019/2183(INL))
[2] European Works Council Directive (Directive 2009/38/EC)
[3] C(2023) 2330, Second-phase consultation od social partners under Art. 154 TFEU on a possible revision of the European Works Council Directive (Directive 2009/38/EC)
[4] ETUC reply to the first phase of the Social Partner Consultation on a possible revision of the European
Works Council Directive (2009/38/EC)
[5] See inter alia in OECD Employment Outlook 2023
[6] See inter alia in Steffen Müller, Georg Neuschäffer: Worker Participation in Decision-making, Worker Sorting, and Firm Performance, IWH Discussion Papers No. 11/2020