IDS HR Study 824, June 2006

European Works Councils

• Considers the practical issues involved in establishing and operating a European Works Council (EWC)
• Looks at the remit of employee representatives and the growing role of EWC subcommittees
• Includes an overview of the EU Directive on EWCs and proposed revisions to this legislation
• Details how EWCs operate in practice in six companies

European Works Councils draw together employee representatives from a company’s European businesses for the purpose of sharing information and consulting on issues of a transnational nature. Well over a thousand companies are estimated to have put these bodies in place since the introduction of the EU Directive on EWCs and this number is rising steadily. Indeed, many employers are now taking the initiative to set up an EWC in advance of receiving any formal employee request.

Although some employers report a lack of real transnational issues for councils to address, companies are becoming increasingly comfortable sharing confidential information with employee representatives. Many are improving the quality of dialogue by devising targeted training programmes and equipping representatives with the skills to carry out their role and participate in meetings more effectively. EWC discussions can act as a useful barometer of the mood of employees and can help management to think out proposals more carefully in advance of making an announcement.

This publication includes detailed case studies of EWCs in operation at: Diageo, Wincanton, Nissan, The Royal Bank of Scotland Group, LogicaCMG and British American Tobacco.