Comparative study on The impact of European works councils

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1 This information is made available through the European Industrial Relations Observatory (EIRO), as a service to users of the EIROnline database. EIRO is a project of the European Foundation for the Improvement of Living and Working Conditions. However, this information has been neither edited nor approved by the Foundation, which means that it is not responsible for its content and accuracy. This is the responsibility of the EIRO national centre that originated/provided the information. For details see the "About this record" information in the EIROnline record to which this article is linked. Comparative study on The impact of European works councils This comparative supplement elaborates on the specific introduction of the EWC directive in the Belgian context. The transposition of the Directive Has the EWCs Directive been transposed in your country? The European directive 94/45 (22 September 1994) was translated in Belgium by means of a collective bargaining agreement. This agreement was negotiated between the Belgian social partners in the National Labour Council (Nationale Arbeidsraad (NAR)). Collective Agreement nr. 62 has been titled: Collectieve arbeidsovereenkomst betreffende de instelling van een Europese ondernemingsraad of van een procedure in ondernemingen met een communautaire dimensie ter informatie en raadpleging van de werknemers. It was decided February 6, In addition to the collective agreement, a law was necessary for a number of technical issues which required legal status. Examples are regulations In the public sector, protection of EWC members, legal procedures, etc. The National Labour Council and the Central Economioc Council formulated advise for the Minister of Labour and Employment (NAR, advise nr , 1996: 1-17).The Law has been approved by the Parliament, but at this moment in time not published in the national Law Gazette. What has been the involvement of the social partners in the transposition process? The social partners have been closely involved in the transposition of the directive. The initial intend was to transpose the directive by means of a national law. Minister of Labour and Employment Miet Smet proposed a bill on 12 October 1995 to the NAR for comments. The NAR deliberated on the matter on 20 November and on 4, 13 and 18 December The reactions of employers and employee organisations formed the occasion to solve the matter by collective bargaining agreement. The negotiations leading towards a collective agreement started on 11 January By the end of January an agreement was reached between the social partners and Collective Agreement nr. 62 was signed on 6 February 1996.

2 The main parties involved in the negotiations where the labour unions ABVV, ACV and ACLVB and the employers organisation VBO. We briefly mention the two most important issues for each party. The ABVV stressed the fact that a full time union official or professional secretary could represent the employees in the Special Negotiation Body. It also wanted the possibility to organise meetings with the representatives of the different Belgian establishments of the multinational. The ACV wanted a collective agreement only if the NAR could also come to a unanimous advise on the necessary accompanying law. It also pleaded in favour of a sort of umbrella council - such as the already existing comité de groupe in France, the centrale ondernemingsraad in the Netherlands and the Konzernbetriebsrat in Germany - which would allow all employees of a certain multinational to gather information on the EWC. The much smaller ACLVB was afraid it would be ignored in the EWC-agreement negotiations since it is not a member of the European VV. The ACLVB also wanted guarantees that it would be informed of all EWC agreements. The VBO wanted guarantees that the pre-existing agreements which had been reached in anticipation of the EWC directive would be confirmed. In addition the VBO was very concerned about the possibilities to include more flexibility into the EWC agreements and about the employer friendly character of the EWCs in general. Finally the VBO wanted to prevent that the Belgian Collective Agreement would go any further than the European Directive. In the transposition legislation/agreement, have any important novelties been introduced into your national industrial relations system? Since Belgium has a long standing tradition with works councils and other forums for negotiation at the level of the firm, one could build on the available knowledge and experience. In this sense, the EWC transposition did not bring any thing earth shattering. Most issues were already included in the Directive and the Belgian translation of these issues does not divert notable from it. However, a number of typical Belgian aspects included in Collective Agreement nr. 62 can be mentioned. The Directive does not explicitly mention employee organisations. The Belgian Collective Agreement nr. 62 changes this and foresees a clear role for these organisations. A second unique component is the so-called co-operation protocol. This protocol outlines the possibility for each EWC to negotiate the practical dealings of the Council between the different social partners. This prevents one sided decisions made by the central management. The concrete steps in this process are left to the negotiators of each EWC agreement in stead of trying to outline all aspects in the Collective Agreement. A third important issue is a transition period for those companies who fall under the minimum threshold of employees. In stead of abolishing the EWC immediately, a transition period of six months is introduced. The transposition of the directive has not really changed the Belgian system of industrial relation or introduced real novelties. The representatives and negotiators in the EWC are picked by the representatives in the works council. If no agreement can be reached, the representatives are elected by majority and if no works council exists they are chosen by the workplace health and safety committee. Only if there is no such committee in the firm is a direct election of the representatives organised. The provisions on the protection of employee representatives and confidentiality are included in the accompanying law.

3 Are you aware of any EWC-agreements concluded in multinationals based in Belgium since 22 September i.e. Article 6 agreements negotiated by SNB s? On 24/03/98, a ETUI/ISE (European Trade Union Institute/ Institut Syndical Europeen) list only mentions one Article-6-agreement in multinationals of Belgian origin. Only Caterpillar (USA/ Belgium), has such an agreement since 11/12/96. The impact of EWC s on industrial relations in multinationals Has any research been conducted in your country on the impact of the creation and existence of European Works Councils on industrial relations within: multinational companies affected which have their headquarters in your country; or subsidiary operations in your country of multinationals which have their headquarters in your country. 1. Cortebeeck V. (1997), De Europese ondernemingsraad. Een kwalitatief onderzoek naar de transpositie van het Belgisch en Brits overlegsysteem op ondernemingsniveau, op het Europese ondernemingsraadssysteem, K.U. Leuven, Faculteit sociale wetenschappen, departement sociologie, 167 p. This licentiate thesis gives an overview of the history of the Directive and its transposition in Belgian legislation. A second part is a qualitative comparative analysis of the EWC issue in Belgium and the United Kingdom with special attention for Article 13-agreements and the actual functioning of EWCs. Union Minière, Pauwels Trafo (Belgian multinationals) and T&N en GKN (British multinationals) are the case studies. 2. Kerckhofs P. (1996), La revendication syndicale des comités d entreprise europeens et sa traduction dans la directive 94/45/CE, UCL, département des sciences politiques et sociales. This study highlights the history of the Directive and the different interventions of interest groups during the process. It also includes the opinions of both employers organisations and unions on the Directive. 3. A research project on EWCs has recently been initiated at the Université Libre de Bruxelles in co-operation with Flemish Universities under the direction of Gaëlle Lanotte. Gaëlle Lanotte ULB - CP 124 Centre de Sociologie Politique av. Jeanne 44 B Bruxelles Belgium Tel.: Fax: A number of studies have focused on the Directive and the transposition from a more legal perspective. Blanpain R. & Windey P. (1994), De Europese Ondernemingsraad, Leuven, Peeters, 266 p.

4 Blanpain R. & Hanami T. (1995), European Works Councils. The implementation of the Directive in the Member States of the European Union. Views from Japan, Poland, and the UK, Leuven, Uitgeverij Peeters Didier J.M. (1995), Transnational information and consultation of employees. The European Directive 94/45/EC of 22 september 1994: a detailed analysis of its provisions for employers, Bruxelles: Club de Bruxelles. 86 p. Dorssemont F. (1996), Richtlijn 94/45 (inzake de instelling van een Europese ondernemingsraad of van een procedure in ondernemingen of concerns met een communautaire dimensie ter informatie en raadpleging van de werknemers). Prehistorie, historie en analyse, Colofon, tijdschrift voor sociaal recht, Antwerpen, UIA. Kerckhofs P. (1997), La directive sur les comités d entreprise européens, CRISP, nr A number of organisations follow the EWC directive and conduct research relevant to their organisation s position. International: ETUI, EIF s (European Industry Federations, e.g. EMF, EMCEF and Euro-FIET, ECF), ETUCO, UAT. National: ABVV (J.L. Struyff, G. van de Velde), ACV (D. Pardon, L. Triangle, H. Fonck), ACLVB, VBO (S. Kohnenmergen). Have there been any notable success stories / failures where an EWC in a multinational with its headquarters or a subsidiary in your country has played an important role According to Peter Kerckhofs a number of multinationals are having problems with the EWC, but since this is confidential information more specific information could not be gathered. Success stories are equally unknown. The thesis by Veerle Cortebeeck illustrates how Union Minière has reached a rather far reaching Article-13-agreement. The impact of EWC s on national industrial relations In general, to what extent does the EWC as an institution fit into your national industrial relations system? Is the EWC a major innovation or can it be seen as a natural extension of existing structures? Did any feature of your country s industrial relations system help the development of EWC s As has been mentioned before, the EWC can not be considered as a major or earth shattering innovation in Belgium. Labour unions traditionally have a large impact on companies in Belgium. This is largely due to a high degree of organisation and a wide power base of the unionised employees. The mechanisms of this influence and power base are organised and regulated by collective agreement indicating certain rights and obligations. It is clear that at the company level a generally high level of negotiation and bargaining takes place between employee representatives and employer representatives. The mandate works council in Belgium goes beyond what is included in the EWC Directive. They include information and advise

5 on employment, economic situation and finances of the company, a certain decision power and control function Has there been any perceptible change to date in industrial relations institutions, procedures and culture which has arisen because of the Directive? The Directive has not caused any significant changes in industrial relations, institutions, procedures or climate. What was mentioned during the negotiations on the collective agreement was the need for an umbrella works council. With this we mean a works council for a company with several branches in one country. In a number of countries including the Netherlands, France and Germany, this exists already. Some companies have taken a similar initiative in Belgium on a voluntary basis. It is particularly interesting that this would allow all Belgian branches of a company to meet before and after EWC meetings to discuss a possible common point of view going into the EWC meeting and a common reaction on EWC outcomes. Although this is not currently foreseen for Belgium, it is certainly one of the possible future developments. Both ACV and ABVV do not exclude the installation of umbrella works councils as a consequence of the working of EWC. Comments and evaluations The ACV mentions in its brochure on European works councils that the directive is an important step forward. Indeed, labour unions have asked for a long time to have a stronger employee participation, more information and more input in the social policy of multinational corporations. Nevertheless, the directive contains a number of negative aspects, including: a lack of clarity concerning the meaning of the concepts information and consultation, a lack of guarantees with regarding respect for voluntary agreements, and uncertainty about syndical representation in the Special Negotiation Body. Further more, an effective operating of EWCs needs time. It also calls for specific training for worker representatives. The ABVV brochure clearly indicates the possibilities of EWCs. The directive introduces a mandatory legal framework for economic democracy. However, this doesn t stop delocalisation. The ABVV also outlines a number of possible problems with the voluntary agreements. The VBO generally evaluates the EWC directive as a positive evolution. Information sharing and consultation are part of good industrial relations and the exchange of ideas at the European level can be beneficial for both sides. We also evaluate the installation of EWCs as a positive evolution. Nevertheless a number of critical questions remain unresolved. Will this provide the impetus for umbrella works councils at the Belgian level? Will necessary rules and regulations be developed and implemented to prevent the elusion of EWCs as was the case for the Renault Vilvoorde closure? And finally, to which extend will decision made by multinationals really be influenced by EWCs? We will undoubtedly know more about these issues in a number of years when EWCs have developed and have started to write their own institutional history. Bibliography ABVV (1996), Europese ondernemingsraden naar Belgisch recht, Brussel: dienst ondernemingen ABVV, 85 p. ACV (1995), De sociale verkiezingen voorbij, ACV-vakbeweging, nr. 436: 3-22.

6 ACV (1997), De Europese ondernemingsraad. Omzetting van de Europese richtlijn in Belgisch recht, Brussel, ACV - dienst onderneming, 126 p. ACLVB (1996), De Europese ondernemingsraden, Gent: ACLVB, 95 p. Blanpain R. & Windey P. (1994), De Europese Ondernemingsraad, Leuven, Peeters, 266 p. Blanpain R. & Hanami T. (1995), European Works Councils. The implementation of the Directive in the Member States of The European Union. Views from Japan, Poland, and the UK, Leuven, Uitgeverij Peeters. Commissariaat-generaal voor de bevordering van de arbeid (1996), Praktische gids voor de leden van de ondernemingsraad. Brussel: Commissariaat-generaal voor de bevordering van de arbeid. 95P. Cortebeeck V. (1997), De Europese ondernemingsraad. Een kwalitatief onderzoek naar de transpositie van het Belgisch en Brits overlegsysteem op ondernemingsniveau, op het Europese ondernemingsraadssysteem, K.U. Leuven, Faculteit sociale wetenschappen, departement sociologie, 167 p. Didier J.M. (1995), Transnational information and consultation of employees. The European Directive 94/45/EC of 22 september 1994: a detailed analysis of its provisions for employers, Bruxelles: Club de Bruxelles, 86 p. Dorssemont F. (1996), Richtlijn 94/45 (inzake de instelling van een Europese ondernemingsraad of van een procedure in ondernemingen of concerns met een communautaire dimensie ter informatie en raadpleging van de werknemers). Prehistorie, historie en analyse, Colofon, tijdschrift voor sociaal recht, Antwerpen, UIA. FNV-brochure (s.d.), Internationaal, FNV. Kerckhofs P. (1996), La revendication syndicale des comités d entreprise européens et sa traduction dans la directive 94/45/CE, UCL, département des sciences politiques et sociales. Kerckhofs P. (1997), La directive sur les comités d entreprise européens, CRISP, nr Meeuws V. (1996), Kroniek van feiten en stromingen, Gids op maatschappelijk gebied, 87, 5, Van Ruysseveldt J. & Visser J. (1996), Weak corporatisms going different ways? Industrial relations in the Netherlands and Belgium, p , in: Van Ruysseveldt J. & Visser J., Industrial Relations in Europe. London: Sage. VBO (1996), De Europese ondernemingsraad in België, VBO-Bulletin, 24, nr.3: 57 VBO (1996), Dossier Europese ondernemingsraad. De Europese ondernemingsraad, VBO- Bulletin, 24, nr. 4: 13-18