European Works Councils as Participants in Euro-Wide Collective Agreements

Abstract

European Works Councils (EWCs) were set up originally for the purpose of information and consultation; neither the first Directive 94/45/EC of 1994, nor the recast version of 2009 (Directive 2009/38/EC) granted them directly the right to conclude agreements with employers. However, EWCs have been concluding numerous agreements on different subjects, among those, “hard themes”, like restructuring. As only in the EU-member states Germany, Austria and the Netherlands, works councils as non-trade union bodies of representation of employees are known, EWC agreements on topics normally handled by trade unions might weaken trade unions and therefore change the national system of industrial relations in some EU-member countries. Legally it is therefore highly controversial, whether EWCs should have the right to conclude agreements with management. This article discusses the legal issues around this question and makes the proposal, to award the negotiation right (only) partially to EWC for themes, which are closely related to their own work, like for example the settlement of own projects. For the conclusion of agreements on themes traditionally reserved for trade unions, EWCs would need a mandate.