European Works Council Training

Jordi Vera.

“ Unions and globalisation Seminar.”

7-10 November – Turin.

Objectives of TrainingWhat Are We Trying To Achieve?

• Basic understanding of the European Works Council Directive

• How we arrive to a EWC agreement• Understanding the purpose of the

agreement and the main features of the agreement

• Roles and responsibilities of EWC representatives

Purpose of EWC Directive

• Decision making increasingly at EU level

• Completion of the EU internal market

• To give employees access to information and consultation at pan European level

• Adhere to tradition of information and consultation in most Member States

Benefits of EWCs

• Increases trust between managers and employees

• Greater employee involvement• Better understanding of management

decisions• Better understanding of business drivers• Can demonstrate company’s concern for

its employees

How We Can Reach a EWC Agreement

• A European works council agreement is designed to cover covering all employees in the EU/EEA

• EEA comprised of Norway, Liechtenstein and Iceland• Management and EWC employee representatives

normally decides jointly to negotiate the EWC agreement for each business .

• Agreements are ,negotiated by all the EWC employee , for co-ordination purposes , however it must be ratified and signed by all the EWC employee representatives.

• New agreement becames effective immediately after the signature . (Company + Employees rep’s.)

Selection of Employee Representatives for EWCs

• The agreement will become effective upon ratification.• The EWC cannot operate without bona fide

company,employee representatives, outside experts and a select committee.

• The selection process for the new EWC rep’s, must be initiated and completed prior to starting the EWC negotiations with the company.

• Once the EWC has been constituted so there can be an initial annual meeting (or more if agreed), election of a select committee and extraordinary meetings if needed.

• The company must follow the selection procedure featured in the agreement which follows selection procedures of each member state.

One example:

• More than 50 employees-- 1 employee representative/country;

• More than 1,000 employees—2 employee representatives/country

• There are several formulas. The key issue is to have a fair representation depending of the headcount size in every country where tha company has activities.

What is “NOT” Social Dialogue• Social dialogue does not necessary

constitute collective bargaining or co determination

• Social dialogue is not to interfere with local information and consultation processes

Coverage

• Covers the company businesses in the EU and European Economic Area (EEA)

• Covers all the employees in the member states of the EU and EEA

Rights of Employee Representatives

• The Employee Representatives will need to have access to telephone, fax, e-mail, computer, and photocopying facilities.

• Where such access is not available in the ordinary course of an Employee Representative’s job, local management will work with such representative to facilitate acces.(We need to ask).

Select Committee

• The Employee Representatives will elect a Select Committee by majority vote, comprised of three (3) Employee Representatives

• Select Committee acts as main regular liaison with management

• Select Committee confers with the Central Management Committee on organizational matters such as agenda for annual meetings, extraordinary meetings, minutes .

• The members of the Select Committee are from different countries (preferebly).

• Desirable that the Select Committee members have an understanding of the English language. The Company will assist Select Committee members to receive English lessons on a voluntary basis . (We need to ask.)

Annual Meeting

• Once per year (minimum)• An agenda agreed by the Select Committee and

Chairman and Secretary, circulated to the Employee Representatives and the Central Management Committee and local Human Resources managers.

• Management Presentations in general cover matters relating to the structure, activities, performance and strategies ,employment levels, investments, H&S, of the Group when these have a material transnational impact on employees

Items of Information to Be Presented at Annual Meeting

• Structure, economic and financial situation, • The probable development of business and of production and sales,• The situation and probable trend of employment,• Investments and substantial changes concerning organization,• Introduction of new working methods or production processes,• Transfers of production, mergers, cutbacks, or closures of

undertakings, establishments, or important parts thereof, • Collective redundancies • Health and safety, environmental issues • Equal opportunities.

Exceptional Meetings

When there are proposed collective redundancies which – (a) will affect employees to a considerable extent in at least two (2) Member States (relocations, closures of establishments or undertakings or collective redundancies) and (b) arise out of the same transnational event and (c) which terminations are planned to be proximate in time; for example, they will occur in the same ninety (90) consecutive day period.Collective redundancies occurring simultaneously but that do not arise out of the same transnational event will not constitute Exceptional Circumstances.

Exceptional Meetings

• The Central Management committee may decide to convene a Special Meeting as soon as possible for information and consultation on measures significantly affecting employee interests

• EWC Select Committee may request such a meeting• A pre-meeting shall be allowed prior to the Special

Meeting. • The Special Meeting will only be attended by Central

Management Committee Representatives, the Select Committee, the Expert and Employee Representatives of those Member States affected by the Exceptional Circumstances.

Mid Year Informal Meeting

• Management Committee meets with the Select Committee for an informal mid year meeting to review the results of the previous annual meeting, plan for the next annual meeting and/or discuss any other topic relevant to the Agreement.

Official Language

• All meetings conducted in English, with simultaneous translation provided according to individual need.(Often.)

Confidentiality

• Central Management Committee/ Employee Representatives are bound not to divulge any information that is expressly stated to be confidential.

• This obligation will continue after the expiry of an Employee Representative’s term of office, as long as the information remains confidential.

• Select Committee can question the Central Management Committee’s designation of information as confidential

• It may request management to reconsider its position, provided that the Management’s determination is final and binding unless the Select Committee can clearly demonstrate that the information at issue is publicly available.

Status and Duration of Agreement

• Article 6 agreement• Term of four (4) years from date of ratification• This Agreement can be amended during the

period set out only by mutual agreement • A request for amendment must be made in

writing and must be signed by a majority of the Employee Representatives or the Central Management Committee

Domicile/Dispute Resolution

• This Agreement is governed by the laws of…• The Central Management Committee and the

Select Committee will first try to resolve amicably any disputes that arise concerning the Agreement.

• If no amicable resolution, either party may resort to the…XX…courts which shall have exclusive jurisdiction to decide the dispute.

Role ofEmployee Representative

• Represent the interests of the employees from the location and the country

• Understand the business which employs the people whom he/she represents...– As expressed in interactions with local management– As expressed in business presentations at the

annual meeting– Other means of internal communication

Role ofEmployee Representative

• Understand how regionalization (EU) and globalization affect the company

• Understand what it takes for the business to succeed

• Identify how they can contribute to that success in order to protect jobs and build prosperity for all the stakeholders?

Role ofEmployee Representative

• Facilitate employee relations at the EU level so that:– Employees are motivated– Employees can adapt to change

• Communicate the results of information and consultation from EWC interactions to the workforce

What Can the Company do to Facilitate Role of the

Employee Representative?• Identify how employee representatives are

selected in each country (appointment, election)

• Determine baseline of knowledge about information and consultation

• How are employee representatives integrated into an EWC?

• What can management (via training) do to further this process?

• Fluency in English (select committee)

How Management Can Facilitate Role of Employee Reps

• Cross-cultural and language problems:How they can be addressed?

• Determine and align expectations of employee representatives of the EWC and management

• Should familiarize employee representatives with agreement and its purpose

• Assist employee representative to increase knowledge, skills and become more effective

Questions?