European Commission proposes changes to EWC Directive strengthening transnational social dialogue

On 24 January 2024, the European Commission presented its proposal to amend the directive on European Works Councils (EWCs).
It aims to ensure more effective communication channels between employers and employee representatives, highlighting the importance of early and meaningful consultations and clarifying the operational framework of EWCs, potentially leading to more structured and efficient consultation processes.

Since their inception in 1994, European Works Councils have facilitated a transnational dialogue between employees and management in multinational companies to discuss issues that affect the company's workforce across different EU Member States.

As we previously reported, following the European Parliament's resolution calling on the Commission to strengthen the role and capacity of EWCs, the Commission last year launched a consultation of the European social partners on a possible revision of the European Works Council (EWC) Directive 2009/38/EC.

At the end of the consultation, the Commission proposed these critical areas of change:

Improved Timeliness and Substance of Consultations: Employers need to ensure that employee representatives are provided with all necessary information.
Enhanced Training for EWC Members: This aspect underscores the importance of EWC members understanding their roles, rights, and responsibilities, necessitating employer support in providing or facilitating access to training.
Greater Legal Clarity: The amendments aim to streamline the EWCs' operation, which could benefit employers by reducing administrative ambiguities and fostering a more straightforward implementation across the EU.

The proposal is now subject to the legislative process within the EU, involving negotiations and approvals by both the European Parliament and the Council. This process will involve extensive consultations with social partners, stakeholders, and Member States to refine the details and ensure the directive's objectives are met.

As the legislative process unfolds, it will be crucial for all stakeholders to actively shape a directive that reflects the realities of the modern workplace, ensuring that the European social model continues to advance in a direction that benefits workers and employers.

At this regard, BusinessEurope, which had already expressed its opinion that there was no need for a revision of the directive, added further concerns about the revision proposal published by the European Commission. It stressed that the assumption of transnationality for single-state issues can create legal confusion and process overlap. Additionally, the proposal's restrictions on management, especially regarding confidentiality and the potential need for prior authorization for non-disclosure, are seen as threats to business competitiveness and timely decision-making.