At The Presence Group, we’ve been working with European Works Councils (EWC) since their inception. Over the years, we've seen them evolve, and we've adapted our support to meet their changing needs. Often, new EWC members, managers, and employee representatives feel overwhelmed when first introduced to this European-level Council. This article aims to provide a basic understanding of European Works Councils and their purpose.

Understanding European Works Councils (EWC)

A European Works Council, or EWC, is a body where European employee representatives of a multinational company and their management counterparts meet to discuss topics related to business progress and its impact on employment, working conditions, and working methods. EWCs were established under a Directive drafted by the European Commission to ensure that companies create a structure for informing and consulting employees on significant transnational projects and changes to the company structure or activities. This framework allows employees to express their views and provide suggestions through their representatives.

Key Provisions and Requirements for Establishing an EWC

The original EWC Directive dates back to 1994 and was revised in 2009. While EU member states have transposed the Directive into national law, interpreting it according to their cultural and legal traditions, several core provisions remain consistent across all member states:

  • Eligibility: A company must employ at least 1,000 employees within the EU member states, with at least 150 employees in at least two member states, to establish an EWC.
  • Initiation: Either management or employees must initiate the creation of an EWC; it is not imposed by any external body.
  • Negotiating Body: A Special Negotiating Body (SNB) composed of employee representatives must be formed to negotiate the agreement that will serve as the basis for the future EWC's work.
  • Subsidiary Requirements: If negotiations do not result in an EWC agreement after three years, subsidiary requirements from the transposed law come into force, forming the basis of the EWC Agreement.
  • Legal Jurisdiction: The EWC agreement must specify the applicable EU member state legislation in case of disputes.

The Flexibility and Diversity of EWCs

The EWC Directive and its national transpositions provide a framework for negotiating EWC agreements, but the European Commission encourages companies to tailor their agreements to their specific business needs and realities. Consequently, EWCs can vary significantly in size, composition, and working methods, making direct comparisons challenging. While information and consultation are their primary purposes, the practical implementation can differ widely.

Seeking Guidance and Expertise

While researching EWCs online can be helpful, obtaining specific guidance from EWC experts is crucial to understanding your role and expectations within an EWC. These experts may be colleagues with EWC experience or professionals within our EWC Network, who have extensive experience negotiating agreements and managing EWCs. Many of these experts are affiliated with trade unions or employer federations. Additionally, various organisations offer hands-on workshops and introductions to working with EWCs, which can provide valuable insights.

We hope this overview has made the prospect of working in an EWC less daunting. For more specific information, guidance from our EWC experts, or training for yourself or your EWC, please contact us.

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