Parliament backs new rules to improve the functioning of European Works Councils 

European Works Councils (EWCs) represent EU workers in large multinational companies that operate in at least two EU or European Economic Area countries. They are designed to ensure workers receive proper information and can have a dialogue with central management on decisions taken at the EU level that could affect their working or employment conditions.

The updated rules, already agreed on by Parliament and Council, strengthen workers’ rights by making sure experts assisting EWCs, including trade union representatives, can attend management meetings in an advisory capacity. Companies will have to provide easier access to information and have to justify situations in which they refuse to share information, or when they consider information has to remain confidential.

The update improves workers’ consultation rights by ensuring that prior to the adoption of a decision affecting them, their representatives can be consulted. EWCs representatives will have the right to meetings with central management in person at least twice a year to discuss the company’s progress.

To ensure better gender balance, EWCs will have to make sure that at least 40% of their seats are allotted to members of either gender.

Quote

Rapporteur Dennis Radtke (EPP, DE), said: “We are currently experiencing enormous economic and industrial upheaval across Europe. I often grapple with the question of disruptions in the world of work, where I feel our social model, our idea of a social market economy, is being crushed just as much as the dignity of the individual in the workplace. This is not just about getting people into employment, we need to get people into good jobs, jobs that are covered by collective agreements, jobs with co-decision making.”

Next steps

The legislation was approved in plenary by 414 in favour and 139 against, with 61 abstaining. It still needs to be formally adopted by the Council before publication in the Official Journal of the European Union and entry into force.

Background

EWCs were originally introduced in 1994 by a directive that was updated in 2009. In February 2023, Parliament adopted a legislative resolution calling on the Commission to revise the 2009 EWC Directive on European Works Councils by 31 January 2024 and to strengthen the EWCs’ role, as the current rules fell short on ensuring democracy at work and enabled information to be restricted on the basis of confidentiality rules.