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Employment and pensions: Consultation on works councils

United Kingdom
18/02/1998
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The Commission is consulting trade unions and employers groups on whether new EC legislation is necessary to ensure that employees are properly informed and consulted in the event of transfers and collective redundancies.

Although nearly all Member States have rules on works councils or similar, the Commission believes that workers' rights are not always sufficiently protected. Its view is that the involvement of workers' representatives is too far removed from where the decisions are actually taken and the Commission wants to protect what it calls "fundamental social rights". It argues that:

  • employees should have the right to be informed and consulted in advance of any decisions likely to affect them;
  • improved competitiveness and increased productivity is better achieved by a workforce more committed and more willing to accept new types of work organisation; and
  • forward management of employment anticipates future problems.

The "social partners" have six weeks to respond to this first round of consultation. If necessary, the Commission will then issue a second consultation document outlining the content of a possible legislative Proposal.

If legislation is proposed, it would be introduced through the "social chapter" by a qualified majority vote. Following the UK government's promise to sign the social chapter, any legislation would bind the UK. Unlike many EU countries, the UK does not already have a system of works councils under national law, although it will have to implement the Works Councils Directive in due course.

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