The Council has today backed plans to strengthen the directive on European Works Councils. This is good news on the way to revision of the Directive.
European Works Councils are meant to ensure that, despite the increasingly international nature of the economy, workers’ rights to information and consultation about management decisions are upheld.
However, the current European Works Councils directive lacks the sanctions needed to uphold these rights. For example, the maximum fine in Germany is just 15,000 Euro, and has no deterrent effect to a company with a billion Euro turnover.
After the European Commission proposed a new directive in January 2024 and the European Parliament adopted its position in April 2024, but still has to finalise it in its next term, the Council secured a mandate ahead of the trialogue negotiations.
ETUC Deputy General Secretary Isabelle Schömann said:
"European Works Councils are unique transnational bodies in multinationals to be informed and consulted on matters of transnational character impacting workers’ rights, jobs and working conditions of the workforce in Europe, including changes deriving from the green and digital transitions. Those information and consultation rights are key for workers and their unions to shape the decisions that determine their working life.
“It is clear from the Council’s position that there is a consensus that the current directive on European Works Councils is not fit for purpose. We would like to thank the Belgian Presidency for its commitment, to reach a compromise acceptable for all Member States.
“However, the Council’s proposal does not include the sanctions required to ensure effective exercise of basic but essential information and consultation rights before decisions are finally upheld.
“It cannot be right that a multinational company with more than 1000 employees which fails to inform and consult its European Works Council about redundancies in a timely and meaningful way faces a maximum fine of around 15,000 Euro in Germany.
“The European Parliament has voted for proportionate sanctions of up to 4 % of the total worldwide annual turnover for companies that flout their obligations. Only such measures avoid social dumping and would guarantee fair competition practices. Such measures should find their way into the final text during trialogues which should start as soon as possible.
