Debate: Revision of the European Works Councils Directive
Date: THURSDAY, 19 JANUARY 2023
Speaker: Nicolas Schmit
Language: EN

In your report, you call on the Commission to put forward a legislative proposal to revise Directive 2009/38/EC on European Works Councils, and you propose a number of concrete legislative suggestions to strengthen EWCs and their ability to exercise their information and consultation rights, as well as to increase the number of EWCs while taking into account the different industrial relations systems in the Member States. This comes at a critical juncture when we need to find policy responses to stimulate social dialogue, one of the essential features of the EU social market economy, while also protecting and enhancing the competitiveness of our single market. We know that we see eye to eye with this Parliament on the importance of social dialogue, and the upcoming Commission initiative to strengthen social dialogue at EU and national levels is a living proof of that. Among the building blocks of our long standing tradition of social dialogue in Europe are tools and processes for ensuring effective information and consultation of workers at company level. At EU level, an extensive legal framework, including European Works Councils, is in place to give workers the right to be informed and consulted by company management when, against the background of the internal market and globalisation, they take strategic decisions, undergo restructuring or contemplate collective redundancies. Well-functioning European Works Councils have an important role to play today. We are still dealing with the aftermath of the COVID—19 pandemic. Digitalisation and the greening of the economy are also deep transformations we need to face. They are a must and an urgency, and these cannot be successful, fair and sustainable without an effective dialogue between workers and employers. Social dialogue is all the more important to cope with the current challenges of high energy prices and their impact on business costs and wage adequacy. In this context, anticipating and managing change is fundamental to a balanced approach between the interests of employees and employers and a sound understanding of their common grounds. We need strong industrial relations between workers and employers at transnational level, which make our internal market stronger and fairer. Obviously we must safeguard and promote employment and industrial activities based in Europe, in particular at a time when Europe’s competitiveness is at stake. But I think that social dialogue is not an enemy of competitiveness. It can be a very important instrument to strengthen and foster competitiveness. Moreover, in a context of rapid change, ensuring legal certainty, both for workers and for employers, is also of the essence. It provides more confidence and trust in the system they are operating in. The Commission reviewed the implementation of the 2009 European Works Council Directive in 2018. At the time, the Commission found that the best course of action was to focus its efforts on supporting the implementation of the existing rules and pursuing compliance of national legislation with EU law on a case—by—case basis. Rest assured that the Commission regularly monitors the transposition of the directive by the Member States. It monitors enforcement mechanisms and assesses each and every complaint or incorrect transposition of the directive. We are also committed to provide financial support in this area and the Commission provides funds for projects carried out by national and European social partners which promote information and consultation in companies, including in relation to European Works Councils. Your resolution refers to essential areas of social dialogue and proposes to revise core concepts of the directive. These include broadening the definition of transnational matters, reinforcing consultation obligations and limiting the use of confidentiality exceptions. You also propose to significantly reinforce enforcement and sanctions for businesses that do not consult workers and to extend the directive to undertakings with pre-existing information and consultation of European Works Councils agreements. The Commission will need to make an assessment of your final proposals, taking into account the principles of subsidiarity and proportionality and better lawmaking. This will also include a legal assessment of the proposals, namely by the extension of the directive to undertakings with pre-existing information and consultation of European Work Councils agreements. In line with established practice under the current mandate and the commitment which has been taken by the President, the Commission is committed to duly follow up on Parliament’s resolution adopted under Article 225 of the Treaty, and this means also a legislative proposal. As you know, before presenting any legislative proposal for Union action in the social policy field following Article 154, the Commission must consult EU social partners. And during this consultation, the social partners may decide to act by means of agreements between them. We take note of the Parliament’s request to present a legislative proposal by 24 January. Let me remind you, however, that should the Commission decide to propose legislative action, the timing of any such proposal would depend on the outcome of those procedures. Social dialogue is close to our hearts, and we must use the full potential of transnational industrial relations to help deliver in a fair and sustainable manner the changes that our economies urgently need, while enhancing the competitiveness and the good functioning of the European economy and specifically of the internal market.