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Image header Agence Europe
Europe Daily Bulletin No. 13269
SOCIAL - EMPLOYMENT - ÉDUCATION / Interview employment

For Dennis Radtke, changes to come in business world prove that this is “the right time to reform European works councils

Dennis Radtke (EPP, German) is a member of the European Parliament’s Committee on Employment and Social Affairs. A former trade unionist, he was rapporteur for the initiative on European Works Councils (EECs) (concerning a company employing at least 1,000 workers in the Member States and, in at least two different Member States, at least 150 workers in each of them, Editor’s note) and explains to EUROPE what he expects from a reform of the 2009 Directive. This Parliament will probably not be able to complete this work, but the MEP intends to stand again and already has an idea of the future priorities. (Interview by Solenn Paulic) 

Agence Europe - In February you asked for the EEC framework (see EUROPE 13113/9) to be reformed. Why is this necessary when European employers don’t want it? Will Parliament be able to complete the text in time? 

Dennis Radtke - It’s not possible to finish it in this term, it is necessary to start with the work, because this is something we as a Parliament put on the Commission’s agenda and which will remain on the table. What I have proposed does not reinvent the wheel. There was never any discussion of touching everything.

But things need to be strengthened and clarified. It’s been more than 15 years since the last review, and the business world did change in this time. The question of what information should be sent to the EEC needs to be clarified. Problems between EECs and management often arise on this subject, with management either unwilling to share information or claiming not to be authorised to do so, because it is linked to the stock market, for example. The legal definition of confidential information needs to be clarified. We have a definition of a trade secret at European level and we also need to find one to provide legal certainty for both parties.

We also need clarification of ‘transnational matters’ and another sanctions regime, because at present, companies that do not respect EEC rights are fined €5,000 or €6,000, at least in Germany. What listed company worth billions of euros can be impressed? The sanctions regime set out in the Data Protection Regulation (GDPR) must be used.

There’s also the idea of suspending management decisions. We have that in German law. Before restructuring a company with a workers council, it is necessary to sign some sort of agreement that represents the interests of both parties in a balanced way.

If this agreement is not signed, it is possible to halt the restructuring of the company. The decision to suspend the process is not, of course, taken by the workers council, but by a court.

This is also why we need a Directive and not just an agreement between the social partners. Access to justice can only be ensured by the Commission.

Finally, there is the issue of EEC costs. In Germany, the law says that these costs are paid by the company, but this is not clear everywhere.

With the changes we are going through, there will be a lot of restructuring. So it’s really the right time to make this reform. 

Rapporteur Elisabetta Gualmini (S&D, Italian) has made a number of proposals to the EU Council on platform working, for which you are shadow rapporteur. Can the EU Council do the same in return, without any room for manoeuvre? 

Of course, if France is critical and its President seems to be defending Uber and Berlin has no position, it’s hard to get things moving! The Spanish Presidency is also in a special situation.

If we take a step in the EU Council’s direction, we expect it to take one too. Elisabetta Gualmini and I have the same objective: to ensure that this Directive is implemented.

We also need to put pressure on governments. Because it is unacceptable for the German government to do nothing about one of the most important dossiers. All those in Germany who want a Directive, a clear Regulation of platform work has to speak up now.

There are a lot of misclassifications on platforms. The Commission estimates that 5 million workers will be affected. That’s a huge amount, and a third status (halfway between true self-employed and employee, Editor’s note) won’t solve the problem. 

The EEC Directive will probably be this Commission’s last text in the social/employment field. Is the institution’s track record good? 

The Commission has achieved a great deal. Ursula von der Leyen made some very clear proposals in 2019, and the Commission has delivered on this. Commissioner Nicolas Schmit has also done a remarkable job.

Six years ago, nobody would have believed that we would have a Directive on minimum wages or pay transparency.

I hope for regulation of platform work. And we are discussing a new Directive on EECs. The European pillar of social rights is increasingly becoming a reality.

But there’s a lot to be done. The Directive on public procurement will have to be reopened in order to implement the Paris Agreement.

We will also have to discuss the Statute for a European Company (EC). The situation at Tesla in Germany is emblematic (safety at work is being called into question after a series of accidents at its factory with over 11,000 employees, Editor’s note).

If a company has 800 employees to date and continues to grow, it is possible to freeze employee rights on the non-executive board. EU companies must not be allowed to become a legal loophole for undermining workers’ and trade union rights.

We also need clear rules on artificial intelligence, because while the potential is enormous, so are the risks.

And we will have to discuss the new mandate of the European Labour Authority (ELA) to resolve legal imbroglios, such as these cases of striking truck drivers who are third country nationals, with “letter-box” companies and bogus self-employment, which raise a whole host of problems.

Contents

EXTERNAL ACTION
Russian invasion of Ukraine
SOCIAL - EMPLOYMENT - ÉDUCATION
SECTORAL POLICIES
INSTITUTIONAL
ECONOMY - FINANCE - BUSINESS
FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
NEWS BRIEFS