BERR rushes to consult on European Works Councils

In an unexpected move, the Department for Business, Enterprise and Regulatory Reform (BERR) hurriedly published a consultation document on 10 September on the revised draft Directive on European Works Councils.

The revised Directive, which only emerged in July, is currently set on a fast track to adoption before the end of the French EU Presidency in December. This explains BERR’s current rush to consult before it is too late.

With only four weeks in which to respond and significant changes proposed under the revised Directive, many of the 600 or so British or American based companies falling under the Directive may wish to make their views known as soon as possible.

The EU Commission is under a duty to review the operation of the original 1994 European Works Councils Directive. It started consultation on amending the Directive in 2004 and received a lukewarm response from employer representatives who preferred to focus on implementing the Directive in the new EU Member States and on spreading best practice.

The Social Partners were therefore encouraged to negotiate an agreement on how to promote best practice; however, this wasn't forthcoming. Faced with a stalemate this spring, the Commission pressed ahead and in July published proposals for a revised Directive with the stated aim of increasing the number of EWCs and making them more effective.

Since then, pressure has mounted on the Social Partners to reach agreement over the proposals. As a result, they have now published a common position (also called 'joint advice') on the revised Directive – in essence, they have agreed to the Commission's revised Directive, albeit with some important changes.

Both the common position and the text of the revised Directive go forward to be considered by the EU Council and Parliament in the run up to a proposed December completion. The rush, combined with the extent of the changes in the Directive, has propelled BERR to hurriedly issue the consultation this week. The closing date for responses is 6 October 2008, but earlier responses are sought.

The original Directive sets out requirements for informing and consulting employees at European level in companies or groups of companies with at least 1,000 employees across the European Economic Area (EEA – the EU countries plus Norway, Iceland and Liechtenstein) and at least 150 in each of two or more of the EEA countries.

However, there is no obligation to set up such arrangements in the absence of a request from at least 100 employees in two or more countries. BERR estimates a current take up rate of 43% cent in the UK, meaning that many more employers are susceptible to such European Works Councils requests.

For more information, see the Eversheds website or read the BERR consultation.