Scope

Directive 2009/38/EC on the establishment of a European Works Council

Evaluation findings

The evaluation report underlines that Member States have for the most part properly transposed EU legislation. It shows that the Directive 2009/38/EC improved information of workers in terms of quality and scope but there are challenges over the effectiveness of the consultation right: despite having the right to express an opinion, EWC members seem to have limited direct influence on the decision-making process in their companies, particularly during restructuring. The evaluation identified that there was still scope for more EWCs to be established. The Directive was found to make an important contribution to ensuring transnational social dialogue at company level.

Estimated savings and benefits

The evaluation concludes that the Directive 2009/38/EC does not impose administrative, financial and legal obligations in a way, which would constitute an unreasonable burden for companies.

There are around 1 000 multinationals with active European Works Councils (EWCs), however, there are currently around 2.400 companies eligible to create an EWC¹. Results on the implementation of the Directive have shown that the quantifiable costs of setting up a EWC have decreased (from EUR 143 537 to EUR 119 207) because fewer meetings with fewer representatives were held. However, this might be linked to the size of companies negotiating new agreements rather than the new provisions enacted as a result of the Directive 2009/38/EC (recast). The costs of operating the EWCs (fixed costs only) seem to have slightly increased for the EWCs established by the Recast Directive as compared to the EWCs established by Directive 94/45/EC. The annual costs of the operation of one EWC relate to the structure of the EWC and the number of different meetings held. Although the number of EWC members is lower in the EWC established since 2011, the country coverage is slightly higher which may influence the translation costs. Also the training and legal advises related costs seem lower with the Recast provisions.

¹ European Works Councils are bodies representing the European employees of a company, through which workers are informed and consulted by management on the progress of the business and any significant decision at European level that could affect their employment or working conditions. The Member States have to provide for the right to EWCs establish Councils in companies or groups of companies with at least 1000 employees in the EU and the other countries of the European Economic Area, when there are at least 150 employees in each of two Member States