European Commission launched a second-stage consultation of European social partners on revising the European Works Council Directive

On 26 July 2023, the European Commission launched a second-stage consultation of the European social partners on a possible revision of the European Works Council (EWC) Directive 2009/38/EC.
It follows the first consultation phase launched on 11 April 2023, which ended with identifying six main areas for reform, subject to further consultation among the social partners.
The main areas of focus for further consultation concern the modification of the notion of 'transnational issue' and 'consultation,' limiting the possibility for management to classify information as 'confidential'; shortening the timeframe for setting up EWCs, improving the ability of EWCs and their members to enforce their legal rights, and ensuring that all EWCs are fully subject to the EU legal framework.
The second consultation phase will end on 4 October 2023.

EWCs promote a shared understanding of the transnational challenges facing large multinational companies and the involvement of employees in the decision-making process.

On 2 February 2023, the European Parliament adopted a resolution calling for revising the European Works Council (EWC) directive to strengthen its function and increase its number while considering the member states' different industrial relations systems.

The Commission followed up on this resolution by launching a consultation among social partners before adopting a legislative proposal, which is expected by the end of 2023.

Business Europe, in its position paper, confirmed the Commission’s position that there is no need to revise the Directive, stating that EWCs’ functioning depends more on practical than legal matters.

Business Europe’s policy approach is to support operators to increase the number of EWCs. It encourages to improve their functioning by awareness-raising and capacity-building on the procedures and benefits of EWCs to employee representatives.

Business Europe proposed an alternative to the European Parliament’s resolution: a Commission Recommendation and a Code of Conduct.

However, Business Europe reaffirmed its commitment to constructively examine the possibility of proposing to the European Trade Union Confederation (ETUC) a negotiation to revise the EWC recast directive in social partner negotiations.

Following the second-stage consultation, social partners can negotiate to conclude an agreement under the Treaty on the Functioning of the EU (TFEU). The Commission could propose legislation, depending on the social partners' consultation outcome.