Do European Works Councils provide extra potential for trade unions needing more dialogue within transnational companies? Hellmut Gohde believes they do

In the the middle of the 1980s a group of European trade union representatives in the metal working industry took the first steps towards creating informal networks. This meant workers from various countries getting together, outside work and sometimes even secretly, in order to develop a joint position vis-à-vis their respective employers.

Employers eyed these attempts at creating international representation structures with suspicion. In a few cases, those involved were openly victimised. In almost all cases, management refused to recognise any formal European representation body. One first pilot agreement was signed with the French Thomson electronics company in 1985. In the following years, it was mainly nationalised French companies where workers’ requests for cross-border information and consultation rights were granted. By 1994, a total of 30 multinational companies had signed voluntary agreements providing for the establishment of European Works Councils, with a recognised information and consultation role.

When the European Directive on the subject was adopted by the Council of Ministers of the European Union on 22 September 1994, it put an end – at least provisionally – to decades of struggle and long, hard negotiations between trade unions, employer organisations and national governments.

European Works Councils, according to the Directive, may be created in companies with 1,000 or more employees across the EU, including at least 150 each in two member states.

The European Trade Union Institute estimates that there are a total of around 2,400 companies where, due to their size, European Works Councils may be formed. In fact, so far, approximately 850 agreements on the creation of EWCs have been concluded. In the transport sector, around 70 companies have been identified where EWCs may be formed and agreements exist for 22 enterprises (see box overleaf).

Some of the most favourable provisions agreed so far in Europe as a whole are to be found in agreements concluded in the transport sector. Works councils and trade unions in companies like Air France or DHL (part of the Deutsche Post group of companies) benefit from far-reaching participation rights and substantial material resources such as travel arrangements and training entitlements.

On the other hand, there are those transport companies whose provisions fall far below the legal minimum requirements. In those cases, management has succeeded not only in robbing the European Works Councils of some of their essential rights but also in exerting a strong influence over the nomination and election of delegates.

Role and responsibilities

European Works Councils’ formal rights are limited to information and consultation. Up to now, they do not possess any direct negotiation rights. Critics therefore sometimes call them paper tigers. However, this would be to underestimate the numerous successes of European cooperation. Trade union members of works councils particularly appreciate the additional opportunity they provide to exchange information and experiences with workers’ representatives from other countries.

Transport companies with European Works Council agreements Air France Air Lingus Alitalia Arriva British Airways Deutsche Bahn (Schenker) Deutsche Post (DHL) Exel (DHL) Fedex Geodis LSG P&O (Dubai Ports World) Salvesen Scandlines Securitas Stagecoach Stena Lines TNT TUI (Thomson-Travel, Hapag Lloyd) UPS Veolia (Connex) Wincanton

EWCs also provide an opportunity for delegates to feed their issues, suggestions and complaints directly to the chief executive of the company concerned. Usually, submissions are limited to issues of transnational character affecting workplaces at a number of locations. Especially in the case of relocation or outsourcing of activities, plant closures or mass redundancies, European Works Councils will start looking for alternative solutions as early as possible.

At British Airways for example, the EWC supported staff in the customer services department when they were threatened by dismissal. Management at the logistics company Wincanton developed a human resources policy, after discussions with the EWC, which requires subcontractors to recognise trade union rights. The EWC at Deutsche Post (DHL) carefully monitored the relocation of the company’s European hub from Brussels to Leipzig.

Trade unions and works councils

The relations between European Works Councils and trade unions are not free from mutual distrust and prejudice. European Works Councils are outside the direct control of unions as unions did not succeed in gaining guaranteed participation rights when the legal framework was developed. Trade union density in most European Works Councils is high. However, some trade unions still fear that European Works Councils will develop into rival structures in the context of collective bargaining and might, in the long-term, even threaten the exclusive negotiation rights of unions.

“It was the European Works Councils that managed to open up access to companies for the trade unions and helped establish trade unions in the workplace”

After 20 years’ experience, there are no signs that these fears might become reality, especially as EWCs usually lack the capacity to mobilise on their own. It comes as little surprise that any criticism of European Works Councils will emanate mainly from countries that don’t have a tradition of works councils in their national law.

Trade unions from countries with national works councils, on the other hand, welcome the formation of European Works Councils as a normal and logical progression which will help them save their own resources and may be used as a vehicle for trade union policy. In various Central and Eastern European countries in particular, it was the European Works Councils that managed to open up access to companies for the trade unions and helped establish trade unions in the workplace.

EWCs in the transport sector whose members are, on the whole, unionised would like to see more participation and support from workers’ organisations. In many companies, the seats reserved for trade union officials remain vacant. The ITF’s European region, the ETF, is currently running a major project to try and correct the situation. The project aims to start better coordination of European Works Councils in the transport industry.

Going global?

European Works Councils in the transport sector have been concentrating their efforts on consolidating their structures. At the same time, they regard themselves as part of a global network of all those involved in the struggle for improved working conditions. Long before EU enlargement, they had integrated Central and Eastern European countries. Another example is that a trade union representative from the US regularly attends meetings of the EWC at the security transport operator Securitas.

Numerous direct and indirect contacts take place between the EWCs and trade union representatives all over the world. These may be used in order to gain access to top-level management, via the EWC, to open up talks, for example when basic trade union and human rights are being denied somewhere outside Europe. Very often, these initiatives take the shape of quiet but effective discussions between the chair of the EWC and members of the board of directors.

Many EWCs in transport companies are also working towards securing global agreements on basic social rights or an adequate response to restructuring. The experience gained through the conclusion of a pilot agreement with Air France has shown that the involvement of the EWC made successful monitoring possible after the agreement had been signed.

Many members of European Works Councils in the transport industry are highly committed to building international cooperation and solidarity. Sometimes they are even ahead of their own trade union organisations when it comes to their international outlook and the varied forms of practical solidarity.

European Works Councils should be regarded as an important additional opportunity and resource that facilitates the communication of trade union issues and the establishment of company-wide networks.

Unions are invited to write in with their responses to the views expressed in this article. Please send any comments to parris_kay@itf.org.uk

Hellmut Gohde works as an independent expert for European Works Councils such as Deutsche Post (DHL), British Airways and Wincanton. Contact www.euro-br.eu