The EWC Directive
The European
Works Council Directive is probably the most far-reaching
industrial relations measure passed into European law. Approved in
September 1994, it was transposed into British law in December
1999.
With many companies now operating on an
international scale, the EWC Directive aims to ensure that
employees in multinational organisations are properly informed and
consulted about the progress and prospects of the enterprises they
are part of.
The Directive states that every multinational
company that has at least 1000 employees in Europe and has 150
employees in at least two member states has to set up a European
Works Council. This is a meeting between employers and employee
representatives that takes place at least once a year.
The employers must inform the representatives
about the current status of the organisation, including its
structure, economic and financial situation. They must also inform
them of any probable business developments, imminent changes to its
organisation and working methods, or cutbacks, closures or
redundancies.
The EWC also gives employee representatives
the right to voice their views and concerns with their employers,
and to report back to their colleagues about what is happening with
the company.
