European Works Councils Research Articles

The European Works Council and the Coverage of Expert Costs

In a recent case of the Austrian Supreme Court (OGH 29.8.2023, 8 ObA 28/23k), a European Works Council sought legal advice and wanted the costs to be covered by the central management of a group of undertakings. This request was denied on the ground that the European Works Council could also have obtained the same advice free of charge from a representative body. The Supreme Court ruled that the central management must also bear the expert costs in these cases and thus clarified that the European Works Council is not obliged to choose services that are free of charge. Case: Austrian Supreme Court ( Oberster Gerichtshof – OGH) of 29.8.2023, 8 ObA 28/23k, ECLI:AT:OGH0002:2023:008OBA00028.23 K.0829.000.

Employee participation at company level: institutions, articulation and challenges

Employee participation at company level is one of the core institutions of what can be called the ‘European social model’, based on national regulations and regulations at EU level, such as the directives on European Works Councils (EWCs) and the Societas Europaea (SE). This process of institutionalisation coincides with fundamental changes in the current era of globalisation and transformation, which increase the importance of the company level for employee participation. We argue that this development highlights the problem of articulation within the multi-level system of employee participation. By comparing institutions of participation at national – we include the cases of France, Germany, Spain and Sweden – and at EU level we analyse whether and how these institutions create opportunities to influence company decisions by giving voice to workers’ representatives. In doing so we identify good practices and, on that basis, develop policy recommendations to strengthen the articulation of employee representation at company level.

European Works Councils: Their Impact on the Europeanization of Industrial Relations in an Era of Market Globalism

The European Works Council (EWC) Directive provides the establishment of a social partnership forum within Multinational Companies (MNCs). The directive gives employees the right to information and consultation with the supra-national group management. The aim of this concept paper is to contribute to the debate on the Europeanization of Industrial Relations (IR) in the European Union. Specifically, it assesses the influence that EWCs, a novel institution within certain Euro-companies, have on the convergence of industrial relations among the member states. This critical topic can be evaluated from the standpoint of the current theory and its practical implications in order to draw the perspectives for a European system of IR both within MNCs and the rest of the companies. Our conclusions indicate that EWCs contribute to Europeanization in several aspects of employee relations, although this contribution has been limited to those issues that are wished for by the MNCs.

2023/24 European Works Council: appropriate training and expert advice (IR)

2023/24 European Works Council: appropriate training and expert advice (IR)

Human Resource Management, Employee Participation and European Works Councils: The Case of Pharmaceutical Industry in Greece

Employee participation is a broad notion that encompasses sets of practices that enable employees to participate in the decision-making process on issues affecting them leading to a committed workforce. According to the 2009/38/EC Directive, a European Workers’ Council (EWC) is established in all undertakings and all community-scale groups of undertakings for the purpose of informing and consulting employees. This study investigates the impact of employee participation on employees and organizations and more specifically the potential benefits and the added value of participation for employees and organizations, the potential costs and threats of employee participation and the added value of EWCs in multinational subsidiaries in the pharmaceutical industry in Greece. The data gathering was carried out through in-depth semi-structured interviews with management, HR executives, trade union representatives and EWC representatives using a semi-structured questionnaire based on the state-of-the-art literature review. Organizations participating in the study are subsidiaries of multinational companies with an active European Works Council in the pharmaceutical industry in Greece. Findings suggest that there are potential benefits of employee participation practices for the employees and added value for the pharmaceutical companies and provide a useful perspective for managers and researchers in the field of labor relations and human resource management.

Europejskie rady zakładowe jako instytucja dialogu społecznego w Polsce

The aim of the article is to characterize European works councils (EWCs) established in enterprises with a community scope. They belong to the institution of dialogue carried out within the framework of collective labor relations, being a manifestation of the constitutional principle of the social market economy. The author introduces the essence of these councils and the context of their appointment, indicates EU regulations and characterizes national legislation. A significant part of the study is devoted to the presentation of selected aspects of the functioning of councils based on his own empirical research conducted among Polish members who identified the strengths and weaknesses of these institutions, listed factors favoring their operation and reasons hindering creation based on knowledge and experience, giving rise to the identification of perspectives development of employee participation in changing socio-economic conditions.

Can access to company boards improve transnational employee representation? Insights from employee representation in European Companies

Ways of strengthening workers’ voice within multinational companies, especially with regard to cross-border restructuring, have been much discussed in recent years. Research shows that European Works Councils (EWCs) are not always informed and consulted in a timely or comprehensive manner, limiting and sometimes entirely preventing employee representatives from exercising early and coordinated influence at transnational level. Against this backdrop, one might ask whether access to bodies such as supervisory and administrative boards, in which economic and strategic decisions are taken, can make a difference to transnational employee representation. Little is known, however, about how institutions for transnational information and consultation are linked to board-level employee representation. This article aims to fill this research gap by analysing the different modes of horizontal articulation between SE Works Councils and board-level employee representation within European Companies (Societas Europaea). Building on evidence from case studies, we identify a number of different modes of articulation and highlight how articulation rests mainly on and is sustained by the overlapping roles of the individuals involved and the holding of multiple mandates.

Brexit and European Works Councils: А confused scenario

Brexit has finally arrived and its consequences are still unpredictable. This exit is unique in European Union history, as are its effects on economies, transportation, and workers. While the Withdrawal Agreements signed by the European Union and United Kingdom aim to so꭫en the economic effects and grant a stable collaboration, there are some loopholes that could deprive British workers of rights that they enjoyed during their membership in European Union, such as transnational information and consultation rights enshrined in the art. 27 of the Charter of Fundamental Rights in the European Union and disposed by Directive no. 2009/38/EC: a Directive that no longer applies in United Kingdom since January 2021. This essay retraces and contextualizes the effect of Brexit on Directive no. 2009/38/EC, mainly known as European Works Councils Directive. The analysis deals with the exclusion of British workers and British representatives from the rights of information and consultation granted by such Directive. Apart from the position of British representatives in many European Works Councils, also the fate of some of these bodies is at the stake due to the exclusion of British workers from the calculation threshold for their creation. This issue will be dealt looking at clarifications set out by the European Commission to face the several legal implications brought by Brexit in the context of European Works Councils.

Friends in High Places: Relations Between European Works Councils and Board-level Employee Representatives

Friends in High Places: Relations Between European Works Councils and Board-level Employee Representatives

Conselhos de empresa europeus no contexto português: dos obstáculos às boas práticas no setor metalúrgico

Almost three decades after the emergence of the European Works Councils (EWCs), obstacles persist to the functioning of that body of information and consultation of workers. After placing the topic within the framework of the Portuguese labour relations system and mapping out some of those obstacles, good practices are mentioned in the light of the metallurgical sector and the Volkswagen EWC. It is argued that, even though it should be looked at carefully, the experiences of good practices are crucial to face uncertainties and reinforce the potential for labour participation in multinationals.

The Europeanisation of Board-Level Employee Representation in France: An Emerging Role for European Works Councils?

The Europeanisation of Board-Level Employee Representation in France: An Emerging Role for European Works Councils?

When are European Works Councils informed and consulted, and how do they gain influence? A quantitative analysis

AbstractThe objective of European Works Councils (EWCs) is to provide employees in multinational companies with information on transnational issues, and with the opportunity to voice their opinions, in order to influence managerial decision‐making. Few, however, reach that goal. This article therefore asks the question: Why? What factors explain whether or not an EWC is able to reach its goals? Building on previously established models and using large‐scale survey analysis, this article largely confirms the importance of factors related to management structure and policy, employee‐side organisation and interaction with management. As several of the main determinants relate directly or indirectly to managerial agency, the study discusses alternative ways to improve EWC functioning by focusing on the role of management.

Putting a number on it: a latent profile approach to the typology of European Works Councils

PurposeIdentify the different types of experiences of European Works Council (EWC) members based on the four fields of interaction of EWCs and evaluate their relative presence.Design/methodology/approachLatent profile analysis using survey data of over 1600 EWC representatives from more than 300 EWCs.FindingsFive different types of EWC experience are identified (marginalized, dominated, spearhead, participative and transnational forum). After 22 years of experience with EWCs, only a small minority of EWC representatives consider their EWC to be a participative structure. While trade union support and training increase the value of belonging to a well-functioning EWC type, they are not enough to circumvent structural obstacles. Additionally the analysis shows that domination by some countries in the functioning of an EWC is not always negative as this experience is present in both well- and ill-functioning EWC types.Research limitations/implicationsThe article argues that research should focus more on the moments of regression which EWCs face; and take a more nuanced approach to the domination by some countries of how EWCs function.Social implicationsThe article adds to the growing body of evidence that argues for structural intervention to improve EWC functioning.Originality/valueThis article uses insights from comparative case study research to cross-validate the findings using quantitative methods.

How do Rights Become Probable in the Global Context?

In this article is analysed how is the emergence of rights in favour of people with less power in the global context probable and is explored what could be the most integral socio-legal approach to discuss this issue, related with the so-called problem of disregard. The analysis took as a case study the figure of the European Works Councils and led to the conclusion that the emergence of rights in that event was achieved through the mediation of a structure that comprises three components: (1) the declaration of a common aim or a kind of program, and (2) specialised structures that (3) perform specific functions. In the paper, this is called “program-driven and structurally mediated functions.” Although the different theoretical approaches to legal globalisation address some of the components of this structure, the theory of the International Public Authority provides a systemic vision that allows addressing the problem in a more comprehensive and articulated way.

Looking for European solutions. Trade unions in Central and Eastern Europe striving for cross-border solidarity

This article deals with the dilemmas faced by trade unions from Central and Eastern Europe (CEE) in the context of their relations with western European (EU-15) unions and the European Trade Union Confederation (ETUC). The issue of cross-border solidarity is re-examined, taking into account its historical meanings as well as current developments under the pressures of globalisation and EU integration. The article analyses key factors affecting East–West trade union relations – different views within the ETUC, discontinuities in European social dialogue, challenges faced by European works councils and the uncertain future of transnational company agreements. Major dilemmas CEE unions cope with vis-à-vis their western counterparts are outlined. The question of how to achieve a common interest platform for trade unions from Central and Eastern Europe and from western Europe is raised, followed by a suggestion that ‘downward convergence’ in industrial relations is bringing the two regions closer.

EWC Confidential. Confidentiality in European Works Councils and How Representatives Deal with it: Case Study and Survey Insights

The idea behind the establishment of European Works Councils (EWCs) is that these are bodies which should be informed and consulted on company decisions and actions. However, this flow of information is often disrupted by confidentiality constraints imposed by management. Three central research questions are: (1) what are the different practices of confidentiality and the withholding of information in EWCs; (2) what are the different handling strategies EWC representatives use in order to deal with confidential information; and (3) how do these handling strategies affect the functioning of the EWC and the employee representatives themselves? The survey findings generally confirm the observations based on the case studies: EWC members who think management withholds information are also more likely to feel limited in discussing information because of the ‘confidential’ labelling; at the same time, EWC members who think management shares all information also feel much more free to talk about that information.

Are European Works Councils Ready for Brexit? An inside look

On 31 January 2020, at 23:00, the United Kingdom (UK) officially ceased to be a member of the European Union (EU). One of the many areas that will likely be directly affected with regard to workers’ rights is the organisation and functioning of European Works Councils (EWCs). EWCs are company-level institutions set up in multinational companies (MNCs) to enable the provision of information to and consultation of employees on transnational matters. This policy brief shows that: Brexit will have an immediate effect on about 14% of all EWCs because they are based on UK national law. There are also UK representatives in more than 70% of EWCs. By 2018, most UK-based EWCs had already discussed the impact of Brexit. However, almost half of the EWCs with UK representatives had not yet discussed what will happen. Of those EWCs with UK representatives, most think the UK members will remain members of the EWC, quite a few do not know, and about 16% predict that they will not remain members.

TRANSNATIONAL REPRESENTATION BY EUROPEAN WORKS COUNCILS IN THE PASSENGER AIRLINE INDUSTRY

Mergers and acquisitions have reduced the number of European Works Councils (EWCs) in the airline industry over the past two decades. In addition, start-up low-cost airlines have been reluctant to form EWCs. Only 5 of the 11 eligible transnational passenger airlines have established EWCs. This limited number of airline EWCs reduces airline employees' opportunity to be involved in strategic decision making in areas such as tourism. All of the available EWC agreements provide the opportunity for management and employee member consultation, the offering of opinions, and providing information related to European transnational operations. The Lufthansa Group and the International Airlines Group EWC agreements contain more subject areas for discussion than the Air France-KLM agreement. Only the Lufthansa Group EWC agreement includes the topic of environmental protection.

Niewyśniony sen o europejskich radach zakładowych. Jak związki przegrywają z korporacjami ponadnarodowymi

Niewyśniony sen o europejskich radach zakładowych. Jak związki przegrywają z korporacjami ponadnarodowymi

What is said in European Works Councils stays there

Purpose The purpose of this paper is to study how employee representatives in European Works Councils (EWCs) treat confidential information and how such strategies might improve the EWC functioning. Design/methodology/approach Building on interviews of several case studies of EWCs, this paper brings together insights from industrial relations and occupational psychology literature. Findings The results show that through actively challenging the management, an EWC can reduce the amount of information labelled as confidential and become freer to communicate with their rank and file. Actively challenging management, however, does not seem to impact the openness of the management to give early and complete information. Research limitations/implications The paper is based on several case studies, which limits the generalisability of the findings. The results, however, indicate that research is required on how challenging confidentiality can incite managements to provide earlier information. Practical implications The research show clearly the potential but also limitations for employee representatives in actively challenging the management over what information is confidential. Social implications This study studies a universally difficult topic for employee representatives: how to handle confidential information. The findings show that EWCs have little levers to force management to provide early information. For this, more structural change is needed. Originality/value This study is the first to focus exclusively on the issue of confidentiality in EWCs. This is a central concern for employee representatives, but research, until now, has not given much insight in which strategies work.