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Hellmut Gohde

Best Practices and European Works CouncilsInformation, Consultation and Transnational Negotiations

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Total number of European Works Councils (estimates)

7 10 20 30

450500

570640

750

850910

1998 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Companies covered by Directive: 2700

EWC´s established since 1994: 900

EWC´s dissolved mainly by mergers and acquisitions: 150

Employees represented by EWC´s: 10 Million

EWC members: 20.000

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European collective labour law in a nutshell

EU Directives and regulations on:

Collective Redandancies

Transfer of undertakings (Acquired rights)

European Works Councils

European Company S.E.

National information and consultation

Merger Control Regulation

Health&Safety

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Key internal challenges for EWC´s

Investment competition (Nokia, Elektrolux)

Diversity of national models of industrial relations across Europe

Complexity of issues discussed (e.g.: Overall company strategies, Introduction of new IT systems)

Languages Barriers

No national coordination in some countries

Increasing attrition rate in most companies lead to discontinuity of employee representation

Lack of trade union support in some cases

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Active Select Committee

Strong Chairperson (Team-Player)

Decent EWC Agreement

Communication + Publicity

Open-minded management

Trade Union Support

EWC Best practice: Success Factors

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Information: Best practice at regular meetings1. Information goes beyond official (public) company accounts

2. Breakdown on countries and business units

3. Report presented by decision making management (CEO)

4. Report includes forecast on future development

5. Documentation available prior to the meeting

6. All items of the Agreement covered (e.g. introduction of new working methods / technologies)

7. Employee focused (impact on people)

8. EWC has prepared questions prior to the meeting (Questionnaire)

9. EWC members to be able to understand (language / acronyms / complexity)

10. Sufficient time for clarification (follow-up questions)

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Consultation: Best practice at regular meetings1. Consultation takes place !!!

2. EWC members are prepared to speak up !!!

3. Management is interested and prepared to listen

4. Report by the Chairman/Secretary on employment issues (agenda slot)

5. EWC speaks with one voice

6. EWC issues written statements (minutes)

7. Employee opinions may at times support management (positive statements)

8. Management response on EWC opinion

9. Follow-up activities for EWC and management (agreed action points)

10. Publication of results (minutes + public information)

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Information + Consultation: Restructuring1. Start European I+C before or at the same time as local I+C

2. Claim for extraordinary meeting of at leas Select Committee (“transnational”)

3. Request Management information on detailed planning (“business case”)

4. Invite Employee representatives of affected sites (“experts”)

5. Involve professional experts (financial, legal, union ….)

6. Enter only into consultation after all information is available

7. Consider counter proposals

8. Structure the I+C process in case of restructuring:

Economical / Financial dimension (“Why?”)

Social dimension (“Who”?)

Process (“When”? / “How”?)

9. Request a follow-up meeting

10. Produce a written statement at the end of the process

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EWC

1: The Symbolic EWC

Four types of EWC´s

Examples:

• Intel

• Apple

• Bertelsmann

• Marks & Spencers

• Procter & Gamble

Management

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2: EWC as Service Center for Representatives

Four types of EWC´s

Examples: TUI, British American Tobacco, Heineken

EWCManagement

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3: Project based EWC

Four types of EWC´s

Health & Safety

VocationalTraining

SocialCharta

PensionSchemes

Equalopportunities

EWC

Management

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4: Participating EWC

Four types of EWC´s

EWCManagement

Examples: General Motors (Restructuring), Arcelor-Mittal (Merger), Ford Visteon (Outsourcing), Wincanton (Agency labour), LG Philips Displays (Social plans), GE (Car tracking policy), TNT (Disposal)

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TNT

• In 2006 the Dutch Mail and Express company TNT announces its intention to sell the logistic division by a public tender.

• The employee are extremely worried about their future due to the tough competition on the market.

• The EWC and the Dutch works council establish a joint working group and request to get involved in the decision making process.

• After signing a confidentiality agreement three representatives of the EWC are given access to the bidding room and have meetings with all potential buyers.

• At the end of the process the buyer (Apollo management), TNT and the EWC sign a joint letter of intend to maintain the structure of the logistic business as a whole, to safeguard employment and to establish a new EWC for the logistic business which today operates under the name CEVA Logistics.

Best practice – Example 1

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General Motors

• At the 2004 meeting of the EWC the European management of GM presents a restructuring programme.

• Due to overcapacity GM intends to close either the Saab factory in Sweden or the Opel plant in Germany and concentrate production in one of the factories.

• The employee representatives request a further meeting of the EWC and involve financial and economic experts. A period of intense work of the Steering Committee begins. At a extraordinary meeting an alternative proposal is presented by the EWC: Both plan will be kept open but will reduce staff by normal attrition within the coming two years to become more competitive.

• After several meetings with the Steering Committee management agrees on the plan.

Best practice – Example 2

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British Airways

• 2009 Agreement on principles national restructuring effecting less than 10 employees:o Management shall forward the draft Business Case to the EWC Chairperson at

least 24 hours before it will be signed of by Management. The Select Committee will be given the opportunity to express their views.

o A local meeting will be held with the staff of the respective country to discuss the planned reorganization. Two members of the Bureau are entitled to attend this local meeting in an advisory role if requested by local staff or their representatives.

• All other issues remains under the normal information and consultation process of the EWC

Best practice – Example 3

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Areva

• In 2006 the EWC three days training course for all EWC members. At the seminar the participants discover huge differences in which female workers are treated at the workplace.

• Due to the big differences between the countries, management and the EWC agree on a joint declaration to benchmark and improve the promotion and career opportunities for female employees.

• In 2007 the EWC and management apply jointly at the EU for financial funding to hold a conference involving local management and employee representatives from all EU countries.

• Following the conference (held in Lyon 4/2008) each country organises a national workshop for setting up of an action plan. The results were presented and compared at the following EWC meting.

Best practice – Example 4

www.euro-br.euUnternehmenszeitschrift Kaefer

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Best practice at court

European court rulings mostly in favour of EWC´s

1997: Renault

1999 Kühne&Nagel

2001 Marks&Spencers

2006 Gaz de France - Suez

2006 British Airways

2006 Beiersdorf

2007 Alcatel – Lucent

Legal procedures are complex and vary from country to country.

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Making EWC meetings successful.

Rare ( once or twice per year)

Expensive (travel, interpreters)

Challenging (different cultures)

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Think about your last meeting with management ….

Did you enjoy it ?

Can you recall the topics ?

Was there any agreed results ?

Was the meeting useful and constructive ?

Did the meeting change, secure or improve the situation of the employees ?

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Bad EWC Meetings

1. Too long management presentations

2. Business driven (annual accounts)

3. Matters too complex (business jargon)

4. Too little time for questions / discussion

5. No results / conclusions

6. (Some) EWC members are not prepared / did not read documents

7. (Some) EWC members do not attend (unexcused)

8. Only few EWC members contribute

9. Each member follows his/her own agenda

10. EWC raises only questions but no opinions (statements)

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Good EWC Meetings

1. Presentations available prior to the meeting

2. All members well prepared

3. Strong employee chairperson (team-player)

4. Presentation time / discussion = 50:50

5. High level of participation and engagement

6. EWC speaks with one voice

7. Appropriate level of management available

8. Discussion is relevant for employees

9. Results / conclusions / follow-up activities

10. Communication to employees

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Best practice for Information and consultation

1. European information and consultation starts prior to local consultation

2. EWC Secretary and/or Select Committee request extraordinary meeting

3. Meeting will be for information only. EWC decides when sufficient information is available to enter into consultation phase.

4. Further questions if necessary in written form

a) economical/financial reasoning

b) Impact on people

c) Process (timelines, implementation etc.)

5. Advice by coordinator, trade union, experts …

6. Second Meeting: Opinion/Statement expressed by EWC

7. Decision and possible implementation of project

8. Follow-up at next EWC meeting

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Hellmut Gohde

Best Practices and European Works CouncilsInformation, Consultation and Transnational Negotiations