EWCs: The emerging union agenda

Unions shift strategy on new EWC Directive but fail to win bargaining powers. EWCs remain advisory only, with challenges ahead over interpretation of transnational issues.

The key points:  The new European Works Council (EWC) Directive will likely be published before the end of the year. Despite union efforts, EWCs remain advisory bodies rather than having bargaining power. Unions aimed for EWCs to gain rights to injunctions and courts to impose fines linked to turnover, but these demands were not met. The notable change is the elimination of the "Article 13" derogation, which means all matters are now considered transnational under the directive. Unions want broader interpretations including deciding when decisions are exceptional and unlimited funding for expert involvement.

Why this matters:  The inability to convert EWCs into genuine bargaining entities limits their power in cross-border corporate decisions. This affects union influence on transnational management actions, leaving EWCs as consultative rather than authoritative bodies. The broader interpretation of "transnational" could expand the scope of EWC consultations but remains limited in enforceability.

What might happen next:  Union demands for unlimited expert funding and the ability to call exceptional meetings may escalate discussions and lead to contestations over the directive’s interpretation. The dialogue around how broadly "transnational" applies will continue to shape EWC operations and union strategies.

What you should be doing:  Employers and HR professionals should prepare for enhanced information and consultation processes with EWCs, ensuring they understand the expanded scope and are ready to engage constructively. Monitoring the final directive and union interpretations will be essential to navigate forthcoming challenges effectively.