By the EESC Workers’ Group 

There are currently over 1 200 European Works Councils (EWCs) in large multinational companies. These bodies are an important tool in ensuring democracy in the workplace, as they have a right to receive information on transnational matters from the company’s central management and give their opinion. Such matters include the current economic and financial situation and likely developments regarding jobs, investments or new working methods. EWCs don’t have the right to negotiate agreements. 

As company decisions are predominantly taken in headquarters but implemented throughout the corporation’s scope, the importance of such bodies is growing. EWCs help worker representatives to better understand company decisions. At the same time, proper information and consultation can help management to shape their decisions so that they can be implemented smoothly in all countries. 

However, evidence shows that there are severe shortcomings in the current EWC Directive (which dates back to 2009) and its implementation. Crucially, many EWCs don’t have the possibility to go to court if their rights are infringed. An analysis of previous court procedures and rulings shows that there are legal uncertainties, especially regarding the definitions of ‘information’, ‘consultation’, ‘transnational’ and ‘confidentiality’, as well as the EWC’s right to call in experts (e.g. legal assistance or trade union representatives). Additionally, there are various outdated regulations that need to be adapted to the current global state of play. 

Companies and their workforces face multifaceted challenges: digitalisation, measures against climate change, demography, skills. Such changes can be disruptive and may impact on a company’s competitiveness, as well as social security and worker productivity. Scientific research proves that effective information, consultation and/or worker participation rights enhance the sustainability of companies’ decisions and their competitiveness, which, in turn, suggests that EWCs can play a crucial role in implementing just transition. 

A revision of the Directive is, therefore, necessary to ensure legal certainty and the proper functioning of EWCs. A quick and smooth implementation of the revision of the Directive should address the existing shortcomings and make EWCs fit for the future. The EESC opinion assesses the Commission’s proposal and makes a number of concrete proposals to the legislators on how to further improve the Directive.