EWCs: Parliamentary Committee votes to back Radtke

Key Facts: European Parliament’s EMPL committee voted 36-11, with a few abstentions, to back Radtke’s negotiating position seeking major changes to the European Works Council (EWC) Directive. Most significant proposal: allowing EWCs to seek court injunctions to block management decisions

What Happens Next: The EMPL recommendation goes to a full parliament plenary, where it is expected to be rubber stamped. Thereafter, trilogue negotiations between EU institutions begin in early 2024, with Parliament seeking access to injunctions and both the Commission and Council opposing them… but might they make some concession on injunctions to the MEPs?  

Why This Matters: Negotiations set to start in early 2025, with potential implementation expected by 2027. The potential for EWCs to seek injunctions poses a risk to management's ability to implement strategic decisions promptly. The parliaments proposals could significantly impact employer-employee relations and decision-making processes in multinational companies. This would represent a possible shift towards increased employee influence in corporate governance.

Action Points: Our advice to members is to continue to make our views on the rewrite of the Directive known to national governments and your member state MEPs. We cannot risk a situation where concessions are made to the Parliament’s hardline position.  We have a meeting with MEPs in Brussels next week. 

ADDITIONAL INFORMATION:

IndustriAll statement  

EWC developments will be discussed at our Brussels Network meeting on Tues/Wed, February 4/5.