EWC – establishment

The thresholds required for a company to be covered by the EWC Directive, in the case of a company with establishments in at least two Member States, are as follows

• at least 1,000 employees in the Member States
• and at least 150 employees in each of at least two Member States.

The establishment of procedures and/or institutions requires the initiative of the interested party. The initiator may be

• central management
• or at least 100 employees or employee representatives from at least two organisations in at least two Member States. The number of employees from one country is not specified.

A trade union initiating the establishment of an EWC should agree with at least one other subsidiary, branch or employee representative organisation operating in another Member State or, failing that, with an employee association. The establishment of an EWC can also be initiated by two or more companies operating in the same Member State, but in this case the central management is not obliged to cooperate.

Another condition is that the initiators must include at least 100 employees, either through a trade union or directly. This number must include workers from at least two companies. This means that if there are several companies or institutions and not all their employees want to join the initiative, there are no obstacles to setting up a council.

The Directive does not specify the content of the initiative, but it should include the intention to set up an EWC, the request for action by the central management and the acceptance of the above conditions. The request must be addressed to the central management, managing undertakings or groups of undertakings at EU level. International, company-specific provisions and the internal rules of the company determine the competent representatives of the company. The structure of the enterprise may be made available in the public information concerning the enterprise. The request may be addressed to the management of a local company or its branch. In this case, the addressees of the initiative should forward the request and all information about the initiators to the central management as soon as possible. The central management should communicate this information to all subordinate companies and their branches so that they can join the initiative if they wish.

Negotiations on the establishment of an EWC require the establishment of a special negotiating body. It is up to the central management of the company and the special negotiating body to agree on the exact form and function of an EWC in their company in the form of an agreement. For example, the following should be agreed

• the scope of the companies covered by the work of the council
• the composition of the council (number of members, geographical distribution taking into account, as far as possible, the need for a balanced representation of employees in terms of occupational activities, categories of employees and gender, and term of office),
• the functions and procedure for information and consultation of the European Works Council and the methods of linking information and consultation between the European Works Council and national employee representation bodies,
• the venue, frequency and duration of meetings of the EWC
• where appropriate, the composition, appointment procedure, functions and operating rules of any select committee set up within the Council,
• the financial and material resources allocated by the employer to the European Works Council,
• the date of entry into force and duration of the agreement.

Self assessment questions:

1. What criteria must be met to set up a European Works Council in a transnational company?
2. What is the special negotiating body?
3. What information should be included in the agreement concluded by the special negotiating body?