The European Commission has welcomed a significant political development aimed at enhancing social dialogue within the European Union. A political agreement was reached today between the European Parliament and EU Member States on revising the European Works Council Directive. This directive is designed to bolster social dialogue across the EU.
European Works Councils (EWCs) serve as platforms where employees are informed and consulted about transnational decisions by companies operating in more than one EU or EEA country with over 1,000 employees. The involvement of employees in decision-making processes can facilitate managing changes such as company restructuring or technological advancements.
In 2024, the Commission suggested an update to this directive to simplify establishing EWCs, improve gender balance, and enhance enforcement mechanisms. The revised directive also seeks to improve access to justice in disputes and strengthens penalties for violations. It aims to streamline implementation by eliminating complex exemptions and providing legal clarity while preserving companies’ decision-making abilities.
Key improvements in the revised directive include ensuring timely consultation of employees, granting equal rights for workers to request EWCs, defining transnational matters clearly, increasing capacity for work through specified resources, aiming for better gender balance within councils, improving access to justice for breaches of rights, and implementing stronger enforcement measures.
Following this political agreement, formal adoption by the European Parliament and Council is required. Once published in the Official Journal, Member States will have two years to implement the legislation. New rules will come into effect a year later. Existing EWC agreements can be adjusted during this transition period to align with new requirements.
Background information highlights that EWCs represent workers in multinational companies on transnational issues and complement national employee bodies. There are approximately 1,000 such bodies currently active across multinational firms representing about 16.6 million EU employees.
The need for revising this directive stemmed from a 2018 evaluation identifying shortcomings in EWC consultation processes and enforcement mechanisms for employee representatives’ rights. The European Parliament requested revisions in February 2023 leading up to a two-stage consultation by the Commission with various stakeholders before proposing changes in January 2024.
Eva Hrncirova serves as spokesperson while Quentin Cortes acts as press officer for further inquiries regarding these developments.
