Employee Involvement Directive 2001
History. The Directive is largely modeled after the European Works Council Directive 94/45/EC. Conversely, according to the European Economic and Social Committee, the updated EWC Recast Directive 2009/38/EC was inspired by the Employee Involvement Directive. Content. EU member states differ in the degree of worker involvement in corporate management. In Germany, most large corporations are required to allow employees to elect a certain percentage of seats on the supervisory board. Other member states, have no such requirement, and furthermore in these states such practices are largely unknown and considered a threat to the rights  of management. These differing traditions of worker involvement have held back the adoption of the Statute for a European Company Regulation 2001 for over a decade. States without worker involvement provisions were afraid that the European Company ("Societas Europaea" - SE) regulation might lead to having such provisions being imposed on their companies; and states with those provisions were afraid they might lead to those provisions being circumvented. A compromise, contained in the Directive, was worked out as follows: worker involvement provisions in the SE will be decided upon by negotiations between employees and management before the creation of the SE . If agreement cannot be reached, provisions contained in the Directive will apply. The Directive provides for worker involvement in the SE if a minimum percentage of employees from the entities coming together to form the SE enjoyed worker involvement provisions. The Directive permits Member States to not implement these default worker involvement provisions in their national law, but then an SE cannot be created in that member state if the provisions in the Directive would apply and negotiations between workers and management are unsuccessful. Definition. Definition of employee participation: it does not mean participation in day-to-day  decisions, which are a matter for the management, but participation in the supervision and strategic development of the company. Employment contracts and pensions. Employment contracts and pensions are not covered by the Directive. With regard to occupational pension schemes, the SE is covered by the provisions laid down in the proposal for a directive on institutions for occupational schemes, presented by the Commission in October 2000, in particular in connection with the possibility of introducing a single pension scheme for all their employees in the European Union.