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Europe Daily Bulletin No. 13436
SOCIAL AFFAIRS / Employment

EU Member States adopt their mandate on revised European Works Council Directive

As expected, the ministers or ministerial representatives of the Member States, meeting in Luxembourg on 20 June, adopted their mandate on the revision of the European Works Council (EWC) Directive, which aims to remedy the shortcomings of the current text dating from 2009 by better defining the transnational issues subject to consultation, specifying the concept of ‘sanctions in the event of non-compliance’ and clarifying responsibilities with regard to the operating costs of EWCs.

The Commissioner for Jobs and Social Rights, Nicolas Schmit, welcomed this very important step, which will now enable the Council of the EU to negotiate with the European Parliament once it has confirmed its mandate.

The more ambitious report by Dennis Radtke (EPP, German) could not be confirmed in April due to lack of time (see EUROPE 13393/23).

EWCs are information and consultation bodies representing European workers in multinational companies employing more than 1,000 people and operating in at least two EU or European Economic Area (EEA) countries.

In its mandate, the EU Council notes that: - the obligation to strive for a gender-balanced composition of EWCs should be without prejudice to national laws and practices concerning the election and appointment of employees’ representatives; - EWCs should have sufficient time to express their opinion before any decision is taken which may affect them, taking into account the urgency of the matter and ensuring that companies are not prevented from adopting decisions in cases where an EWC has not delivered its opinion within a reasonable period of time; - the mandate strengthens the provisions on access to judicial proceedings and (where appropriate) administrative proceedings, in particular by guaranteeing that the costs of legal representation and participation are covered; - it simplifies the rules on penalties while maintaining the list of factors that may be taken into account when determining penalties, such as the size and financial situation of the company, the seriousness of the infringement and whether the infringement was committed intentionally or negligently.

It clarifies that information can only be withheld or treated as confidential for as long as the reasons justifying these limitations persist, explains a press release.

According to one source, the language was generally cautious throughout the negotiations and the text to ensure that it did not affect too many companies, particularly through this paragraph on the definitions of transnational issues: “To this end, it should be specified that this Directive should cover not only cases where the measures envisaged by the management of an undertaking are reasonably likely to affect its employees in more than one Member State, but also cases where those measures are reasonably likely to affect the employees of that undertaking in only one Member State, but where the consequences of those measures are reasonably likely to affect its employees in at least one other Member State

During the public debate, France – “the country with the second most EWCs”, said its representative – welcomed this revision, in particular the clarifications on transnational issues. Paris will, however, ensure that “this balance is maintained with the European Parliament”.

Germany, for its part, abstained on this text for lack of a position.

Link to mandate: https://aeur.eu/f/cr7 (Original version in French by Solenn Paulic)

Contents

SOCIAL AFFAIRS
Russian invasion of Ukraine
ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
COUNCIL OF EUROPE
EP2024
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU
NEWS BRIEFS