Press release

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Trade unions boosted by EU Commission’s plans for European Works Councils

The European Commission today published plans for overhauling laws on European Works Councils which will deeply worry UK firms. The proposals will boost the role of trade unions in European Works Councils, and could force many companies with EWCs to renegotiate the agreements they operate under.

Clauses in the new Directive give European trade union organisations like the European Metalworkers Federation rights to act as “expert” advisers to employees and to attend meetings between employers and employees, even when a company does not recognise a union.

Another provision will force companies with EWCs to renegotiate their agreement when a significant restructuring occurs, and makes agreements put in place during the “UK window” in 1999 invalid.

Philip Sack, Director of Policy at employee consultation specialists ESG said:

“The Commission is bowing to the trade union agenda again. Unions see European Works Council as an opportunity to challenge corporate restructuring, and slow down decision-making. EWCs also give unions an opportunity to get a foot in the door at companies where they are not active.

“The timing of this proposal is terrible, coming hot on the heels of the Agency Workers and Working Time Directives which will add major costs to business, at a time when companies are struggling to cope with an economic downturn. It’s a triple whammy for large employers.

“Many companies will be thinking, why invest and employ people in Europe when the cost of doing so is so much higher than in the rest of the world?”