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Europe Daily Bulletin No. 8689
Contents Publication in full By article 19 / 43
GENERAL NEWS / (eu) eu/social

Commission launches first phase of consultation between interprofessional social partners and Community sectors in context of review of European works councils directive

Brussels, 20/04/2004 (Agence Europe) - On 22 September 1994 ten years ago, the Council adopted Directive 94/45/EC concerning the establishment of European works councils so that workers may be informed and consulted at transnational level on all decisions affecting the companies where they work. Since then, the legislative and institutional framework has evolved, as has the economic context and the companies' sphere of activity. Major progress has been made and European works councils have been proved of value as an instrument for the transnational involvement of workers, which is likely to make a very positive contribution especially to constructive management of change, for companies and for company personnel. In order to ensure that the undisputed potential of these works councils is fully exploited over coming years, the Commission has decided to consult social partners on how to achieve this goal. Approving its communication entitled: "European Works Councils: towards optimisation of worker involvement potential to the benefit of companies and personnel", the European Commission launched on Monday its first consultation phase for interprofessional social partners and Community sector-specific social partners in the context of review of the directive. "This is a neutral document, which explains what has happened over the past ten years, which examines the problems noted in the way the directive works and also the consequences of enlargement on concrete application of its provisions", Antonia Mochan, spokesperson for Commissioner Stavros Dimas, commented.

The Commission document notes two success factors in the directive. First of all, there is the fact that it grants maximum flexibility to social partners to find, at company level, the solutions that are best adapted to their specific situation. Then, there is the fact that it does not seek to determine the method of selecting worker representatives. This question is settled at the level of the Member State concerned, in conformity with its national law and the practice in force on its territory, the Commission recalls, specifying that the directive has thus been smoothly integrated into the social relations system proper to each Member State. Criticism was, however, expressed about the way worker information and consultation works when companies are restructured. The Commission explains that it is in this kind of situation that workers feel the most threatened and most actively seek the security that real involvement in the process can bring them.

The Commission also notes that enlargement will affect the directive in two ways. On one hand, if the activities carried out in the new Member States are included, this will make the number of companies or groups that fall within the scope of the directive rise sharply. The Commission notes that the impact will be felt by companies that have their registered offices in the current Member States but also by companies with their registered office in the new Member States. This means that new works councils may be set up in these entities. On the other hand, companies or groups owning subsidiaries in the new Member States will have to enlarge the works councils they already have in order to guarantee representation of these subsidiaries newly included within the scope of the directive.

After all these considerations, the Commission believes that the time has come to consult social partners on how to use the potential of European works councils to the best advantage, and optimise their contribution to achieving the objectives set by the European Council in Lisbon. It invites social partners, on the basis of Article 138 of the EC Treaty, to make their views known on: - the best way to guarantee full exploitation in coming years of the capacity of European works councils to promote positive and constructive transnational social dialogue at enterprise level in the interest of companies and of the people those companies employ; - possible orientation of a Community action along these lines, including, where necessary, review of the directive on European works councils; - and the role that works councils believe they can play in the positive management of change and its social consequences.

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