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Unions with an EWC mission

Published: 10 June 2008
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Unions in Europe are on a mission to convince governments and the European Parliament to support new rules for European Works Councils that will give workers greater power to influence corporate decisions.


Opening Session






Conference

 The call came from a highly successful two-day conference in Brussels that brought together unions and EWC reps in the opening shots of a political campaign by the ETUC and union federations - that include UNI-Europa - to win a revised European directive.


EU Commissioner Vladimir Spidla told delegates that the Commission will be unveiling its draft revisions to the original 1994 EWC directive in July - leaving a very tight timetable to win approval from the current European Parliament and win a qualified majority from governments.


Commissioner Vladimir Spidla with

the ETUC's Reiner Hoffmann





John Monks

 All now hinges on the political road, following the union decision not to proceed with negotiations with the employers group Businesseurope that offered “too little, too late,” ETUC General Secretary John Monks told the 300 participants.



“Making EWCs more effective and influential is a key objective,” he told delegates. “We want a social dimension that is strong and influential.”



He warned that investors (that include pension and private equity funds) and “Wall Street rules” increasingly demand returns from companies of over 20% - increasing the pressure for drastic changes in the way companies are run and their workforces structured. “We are looking for counter balancing forces - including EWCs, which are an important part of that balance.”




The union campaign calls for wider rights to EWCs for information and consultation before key decisions that affect workers - like restructuring, takeovers and outsourcing - are finalised.



Unions also want better support for EWC members (like training and expert advice) and tougher sanctions in the revised directive against companies that fail to follow the rules.




Nokia’s decision to close a factory in Germany and axe 3,000 jobs without consulting their EWC was cited by several speakers in panel sessions that identified some best practices across the EWCs as well as the problems.



The good news included work by the AXA EWC to ensure a new job created in France to match each of the 1500 outsourced jobs created in Morocco and saving 125 jobs in Genoa, reported EWC secretary Daniel Voulot.


Panel members Edgardo Iozia and Socialist MEP Jan Cremers




In 75% of cases of restructurings however, workers are neither informed nor consulted, the ETUC told the media. “The campaign for a stronger workers’ voice in corporate decisions and for stronger European Works Councils goes forward,” said John Monks.



The case for EWCs - which now cover almost 15 million workers and more than 800 multinational companies in the EU - no longer has to be proved, Commissioner Spidla told a crowded auditorium. They play a key role in anticipating change.



“EWCs are all the more necessary today because society is beset by so many changes … The EU is determined to be pro-active for workers to be more involved in companies so they are informed and consulted about strategic changes.”



He promised to take into account the views of the social partners in producing the draft directive. EWCs do not currently have the means to play their role fully and a review is needed, he told the meeting.



“We have to make sure that workers are not undefended when it comes to the changes of modern times. Information and consultation with workers is not a luxury, it is a necessity. We want to strengthen the EWCs that work and give others the opportunity to work fully.”



The Commissioner won praise from the ETUC for getting the revised directive back on track - and from one conference delegate for actually replying to his letter on the issue!




Gerhard Mikolasch

 The man in the hot seat was Jorgen Rennest from Businesseurope - which is expected to lobby hard against some of the key demands for revision from unions.



His group supports many of the points made in Commissioner Spidla’s original proposals but he called for flexibility and for EWCs to reflect the history and culture of the companies they operate within.




“We believe we could have reached agreement that could have led to a further improvement in social dialogue.”



The fact remains however that the original 1994 EWC directive was also, ultimately decided through the European political process - parliament and governments - following opposition form business interests at the time.


Mario Ungaro



“This is a lobbying battle. You have to help - we cannot do all this in Brussels,” John Monks urged unions and EWC members.



“We feel we have a realistic chance of seeing a revision of this directive,” Reiner Hoffmann, ETUC Deputy General Secretary, told the media. “The next step is in persuading the European Parliament. The entire European trade union movement is mobilised to try and secure this revision.”