Employee representation
The members of the Special Negotiating Body are selected in proportion to the total number of employees of the company or group of companies in a given member country. One member from each member country shall be selected from 10% of the number of employees in all member countries. The procedures for appointing the members of the Special Negotiating Body are set out in the legislation of the countries in which they are elected or appointed.
Determining the number of members to be appointed Each member state (taking into account all companies and establishments operating in it) is entitled to one seat from 10% of all employees in the member state. Internally, the distribution of members is proportional to the number of employees in a company or group of companies in a given member state. Mandates are provided for central management to actively contribute to the establishment of the Special Negotiating Body. The central management should cover all financial costs related to the establishment of the special negotiating body, its activities and all reasonable expenses.
While the negotiation process, the special negotiating body may request the assistance of experts. These may include representatives of EU-wide workers’ organisations. These experts and representatives of workers’ organisations may consult each other during the negotiations if the team so wishes. In order to strengthen its own position, the Special Negotiating Body has the right to negotiate and bargain without central management. Central and local management and authorised European employee organisations should be informed of the composition of the Special Negotiating Body and the start of negotiations in a particular multinational or group of companies.
The special negotiating body has the mandate of the European Works Council, the operational arrangements and the content of the consultations during the cooperation with the central management. The parties concerned can therefore agree on
- the establishment of an EWC, with its terms of reference or on the basis of national law; or
- the information and consultation of employees and the operating procedures.
If negotiations reach an impasse or the parties cannot agree on procedures, the special negotiating body can decide by a two-thirds majority to suspend the procedures for reaching agreement. After such an event, a moratorium of two years (which may be shorter if the parties agree) will take effect. No other institution can be established during this period.
The way in which the EWC operates depends on its activity, its structure, the traditions of the company or group of companies, the activity of the workers’ representative organisation and the willingness of the central management to cooperate. The main role and right of EWCs is to inform and consult in economic decision-making. Although consultation is only possible on matters relating to management decisions, the EWC must be informed of all international company matters affecting employees’ interests. These transnational matters are those which affect at least two member countries of the operating company and which have a potential impact on the affairs of the company’s employees or which relate to the transfer of activities from one member country to another. The information provided by management should enable employee representatives to make a full assessment of the management’s decision and its likely impact. The consultation should provide an opportunity for employee representatives to express their own views on the measures proposed by the company. This opinion should be taken into account when decisions are taken by the management. Such consultation should take place at a mutually convenient time, without impeding or unnecessarily delaying the decision-making process and without overstepping the boundaries of management responsibility. Management shall respond to the opinion of the EWC.
Self assessment questions:
- How the members of the special negotiating body shall be selected (in what proportion to the company employees)?
- How operation of special negotiating body could be supported?
- How a deadlock in negotiating the EWC agreement could be overcome?
