The economic crisis and the EWC
Dr. Werner Altmeyer
Sibiu, 07.10.2010
Agenda
1. Problems during crisis
2. Some figures: Multinationals with EWC
3. EWC Intercultural Experiences
4. Information and Consultation provision to the EWC
5. EWC in Practice
6. Examples of transnational agreements
Problems during crisis
Accelerated transnational restructuring, mergers and acquisitions
How to safeguarde employment and skills?
How to safeguarde sites and branch offices?
The reality: 50% of all European works councils are not consulted before
a transnational restructuring decision is made public
What is „consultation“ about?
How strong is the link between national and European works councils?
Multinationals with EWC
EWC Directive
1994 EU Directive
1996 national laws
1999 Art. 15 Revision
2004 initiative
2009 new EU Directive
2011 new national laws
961 + 48
431
49
Art.13 Art.6
1994 20101996
~ 2.300
Delegates from new Member states
961 EWC bodies currently active, more than 20,000 delegates
209 EWC bodies including one or more representatives from a new EU
member state (2004)
41 EWC bodies including one or more representatives from a new EU
member state (2007) - Bulgaria and Romania
24 EWC bodies including one or more representatives from EU applicant
countries (Croatia, Macedonia, Turkey)
Data source: European Trade Union Institute, EWC database, July 2010
A “ typical “ EWC today
23 members, increasing number
from 9 countries, one third from host country
5 management representatives involved
Select committee of 5 members
2 plenary meetings a year (ordinary + extraordinary) over two days
3 select committee one–day meetings a year
3 out of 10 EWCs have mixed working groups on specific issues
Source: Evelyne Pichot, European Commission
EWC Intercultural Experiences
Betriebsrat + GewerkschaftenWorks council + trade unions
Comité d´entreprise + syndicats
BetriebsratWorks council
Comité d´entreprise
GewerkschaftenTrade unions
Syndicats
Mediterranean model
„Germanic“ model
Anglo-Saxon model
Transformation model
Scandinavian model
Alcatel-Lucent
December 2006: merger Alcatel (F) and Lucent Technologies (USA)
Consequence: 12,500 jobs are on the list of cuts
March 2007: European protest day
April 2007: French jugdes draw up criterias
November 2009: Day of action in six European countries. Some support
was also given from US employees. Since the merger of the two former
companies in December 2006, four restructuring programmes have been
carried out up to now and thousands of jobs dismantled.
Alcatel-Lucent
The employer must present to the EWC the following: a precise, figured report on the reasons for closure, shift and
merger of business activities a precise, figured exposition of the calculation method and the elements
which were used for the calculation of the alleged staff overhang the number of planned job cuts, and to be more precise for every division
and for every country, separated into employee categories exact and figured grounds for this distribution and the time schedule for
the planned downsizing
This information must be „complete and precise enough, to explain
the development of the employment on an European level to the EWC
and to allow for an exchange of views and dialog with the
management in view of full knowledge of the facts“.
Gaz de France
November 2006:
EWC stops the merger with the Suez group by interim injunction
January 2008: the highest French court confirms the decision
→ Supervisory and administrative boards of multinational companies can
not decide to merge with other companies until the consultation of the EWC
has taken place in due form and wasn't completed correctly in all details. A
financial analysis is also part of the procedure by consultancy firms which
the EWC selects itself. The judges give an independent participation right
to the EWC, independently of participation rights in individual countries.
Highlight of a number of verdicts in France which strengthen the meaning
of transnational employee representations
What means “information”?
The Directive 1994 doesn't define information at all
The Directive 2009 describes as follows:
Information means transmission of data by the employer to the
employees’ representatives in order to enable them to acquaint themselves
with the subject matter and to examine it
at such time, in such fashion and with such content as are appropriate
to enable employees’ representatives to undertake an in-depth
assessment of the possible impact
and, where appropriate, prepare for consultations with the competent
organ of the group
The following questions must be answered:
Examination: How fast can EWC members check financial data
thoroughly?
Time: When is the adequate moment?
Method: What is adequate to the purpose?
Assessment: How can EWC members judge the possible consequences
thoroughly?
Preparation for consultations: How does one prepare for it? Which tools
and framework conditions to be fulfilled?
When will a measure have significant consequences? (Example Wabco,
October 2008: "if by an alteration at least 50 jobs are concerned in two
countries")
What means “consultation”?
The Directive 1994 defines as “exchange of views and dialogue”
The Directive 2009 defines consultation more exactly:
at such time, in such fashion and with such content as enables
employees’ representatives to express an opinion on the basis of the
information provided
within a reasonable time, which may be taken into account within the
group
The following questions must be answered:
At which moment does a statement still have influence on the decision
making of the central management?
Adequate period: How fast can EWC members work out a statement
which takes into account all relevant financial data?
What does “statement” mean at all? (in France this is an alternative
restructuring plan, worked out with the assistance of consultancy firms)
A missing statement leads automatically to a prohibitory injunction
against central management (see example of Gaz de France)
EWC in practice
Symbolic EWC
Service driven EWC Project driven EWC
Participative EWC
EWC in practiceTypology
EBR - EWC - CEE
Symbolic EWC
Management
EWC in practiceTypology
EBR - EWC - CEE
Management
Service driven EWC
EWC in practiceTypology
EBR - EWC - CEE
Project driven EWC
Management
EWC in practiceTypology
EBR - EWC - CEE
Participative EWC
Management
June 2009: the French electronics company Thales signed a first
transnational agreement for 56,000 employees in eleven countries.
Aim: improving the professional development of employees
Whereas normally only general principles are defined in comparable
agreements for other companies, Thales has committed itself to
achieve concrete objectives and to put in place a monitoring process.
April 2010: additonal agreement on personnel development reviews
This is a milestone for staff development within high tech companies.
Examples of transnational agreements
November 2009: the Luxembourg based steel group ArcelorMittal,
which has been hit hard by the crisis, signed an agreement for
115,000 employees in 34 countries.
Aim: promote long term job security, the development of employee
competency and to improve social dialogue.
A high-profile group for social dialogue has been set up, to monitor
the profitability of all sites and the supervision of the agreement.
Establishment of parity based control committees in each country.
An arbitration board is planned for any disputes.
Examples of transnational agreements
July 2010: the French metal companies, Alstom and Schneider
Electric, signed an agreement for EU, Norway, Switzerland, Turkey.
Aim: to regulate conditions for employees which are affected by the
sale of the power transmission and distribution divisions of the French
nuclear company Areva to Alstom and Schneider Electric.
Three years guarantee for no plant closures and no redundancies.
Once a year, the EWC will evaluate compliance to the agreement.
This is the first time in EU history where the social consequences of
an acquisition are regulated in a transnational collective agreement.
Examples of transnational agreements
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