Works council
Encyclopedia
A works council is a "shop-floor" organization representing workers, which functions as local/firm-level complement to national labour negotiations. Works councils exist with different names in a variety of related forms in a number of European countries, including Britain (Joint Consultative Committee); Germany
and Austria
(Betriebsrat); Luxembourg
(Comité Mixte); the Netherlands
and Flanders
in Belgium
(Ondernemingsraad); France
(Comité d'Entreprise); Wallonia in Belgium (Conseil d'Entreprise); and Spain
(Comité de empresa).
One of the most commonly examined (and arguably most successful) implementations of these institutions is found in Germany. The model is basically as follows: general labour agreements are made at the national level by national unions (e.g. IG Metall
) and national employer associations (e.g. Gesamtmetall), and local plants and firms then meet with works councils to adjust these national agreements to local circumstances. Works council members are elected by the company workforce for a four year term. They don't have to be union members; works councils can also be formed in companies where neither the employer nor the employees are organized.
Works council representatives may also be appointed to the Board of Directors
.
As with co-determination
, there are three main views about why works councils primarily exist: to reduce workplace conflict by improving and systematising communication channels; to increase bargaining power of workers at the expense of owners by means of legislation; and to correct market failures by means of public policy.
passed a Directive
(94/45/EC) on the establishment of a European Works Council (EWC) or similar procedure for the purposes of informing and consulting employees in companies which operate at European Union
level.
The EWC Directive applies to companies with at least 1,000 employees within the EU and at least 150 employees in each of at least two Member States.
European Works Councils were created partly as a response to increased transnational restructuring brought about by the Single European Act
. They give representatives of workers from all European countries in big multinational companies a direct line of communication to top management. They also make sure that workers in different countries are all told the same thing at the same time about transnational policies and plans. Lastly, they give workers’ representatives in unions and national works councils the opportunity to consult with each other and to develop a common European response to employers’ transnational plans, which management must then consider before those plans are implemented.
The EWC Directive was revised by the Council and the European Parliament in May 2009. The changes contained in the new ("Recast") Directive must be transposed into national law by 5 June 2011, and have important implications for all companies in scope of the legislation, both those with an existing European Works Council and those yet to have set one up.
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
(Betriebsrat); Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
(Comité Mixte); the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
and Flanders
Flanders
Flanders is the community of the Flemings but also one of the institutions in Belgium, and a geographical region located in parts of present-day Belgium, France and the Netherlands. "Flanders" can also refer to the northern part of Belgium that contains Brussels, Bruges, Ghent and Antwerp...
in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
(Ondernemingsraad); France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
(Comité d'Entreprise); Wallonia in Belgium (Conseil d'Entreprise); and Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
(Comité de empresa).
One of the most commonly examined (and arguably most successful) implementations of these institutions is found in Germany. The model is basically as follows: general labour agreements are made at the national level by national unions (e.g. IG Metall
IG Metall
IG Metall is the dominant metalworkers' union in Germany. Analysts of German labor relations consider it a major trend-setter in national bargaining. As a metalworkers' union, it represents workers in the motor vehicle industry...
) and national employer associations (e.g. Gesamtmetall), and local plants and firms then meet with works councils to adjust these national agreements to local circumstances. Works council members are elected by the company workforce for a four year term. They don't have to be union members; works councils can also be formed in companies where neither the employer nor the employees are organized.
Works council representatives may also be appointed to the Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
.
As with co-determination
Co-determination
Co-determination is a practice whereby the employees have a role in management of a company. The word is a literal translation from the German word Mitbestimmung. Co-determination rights are different in different legal environments. In some countries, like the USA, the workers have virtually no...
, there are three main views about why works councils primarily exist: to reduce workplace conflict by improving and systematising communication channels; to increase bargaining power of workers at the expense of owners by means of legislation; and to correct market failures by means of public policy.
European Works Council
On 22 September 1994, the Council of the European UnionCouncil of the European Union
The Council of the European Union is the institution in the legislature of the European Union representing the executives of member states, the other legislative body being the European Parliament. The Council is composed of twenty-seven national ministers...
passed a Directive
European Union directive
A directive is a legislative act of the European Union, which requires member states to achieve a particular result without dictating the means of achieving that result. It can be distinguished from regulations which are self-executing and do not require any implementing measures. Directives...
(94/45/EC) on the establishment of a European Works Council (EWC) or similar procedure for the purposes of informing and consulting employees in companies which operate at European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
level.
The EWC Directive applies to companies with at least 1,000 employees within the EU and at least 150 employees in each of at least two Member States.
European Works Councils were created partly as a response to increased transnational restructuring brought about by the Single European Act
Single European Act
The Single European Act was the first major revision of the 1957 Treaty of Rome. The Act set the European Community an objective of establishing a Single Market by 31 December 1992, and codified European Political Cooperation, the forerunner of the European Union's Common Foreign and Security Policy...
. They give representatives of workers from all European countries in big multinational companies a direct line of communication to top management. They also make sure that workers in different countries are all told the same thing at the same time about transnational policies and plans. Lastly, they give workers’ representatives in unions and national works councils the opportunity to consult with each other and to develop a common European response to employers’ transnational plans, which management must then consider before those plans are implemented.
The EWC Directive was revised by the Council and the European Parliament in May 2009. The changes contained in the new ("Recast") Directive must be transposed into national law by 5 June 2011, and have important implications for all companies in scope of the legislation, both those with an existing European Works Council and those yet to have set one up.
Further reading
- European Commission (2008) Employee representatives in an enlarged Europe (2 volumes). Luxembourg: Office for Official Publications of the European Communities. ISBN 978-92-79-08928-2 (Volume 1), ISBN 978-92-79-08929-9 (Volume 2).
- Fitzgerald, I., Stirling, J. 2004. European Works Councils: Pessimism of the Intellect, Optimism of the Will?, London, Routledge.
- Lecher, W., Platzer, H., Rub, S., Weiner, K. 2002. European Works Councils: Negotiated Europeanisation: Between Statutory Framework and Social Dynamics, London, Ashgate.
- Thelen, Kathleen. 1993. West European Labor in Transition: Sweden and Germany Compared. World Politics 46, no. 1 (October): 23-49.
- Turner, Lowell. 1998. Fighting for Partnership: Labor and Politics in Unified Germany. Ithaca, New York: Cornell University Press.
External links
- European Commission: European Works Council legislation
- ETUC: On the offensive for stronger European Works Councils