Commission proposes stronger role to European Works Councils – Government submitted its position to Parliament

The Government supports the aim of the Commission’s proposal to address the shortcomings observed in the application of the European Works Councils (EWCs) Directive. However, increased administrative burden and costs should be avoided.

European Works Councils (EWCs) represent European employees in multinational companies. The directive sets the minimum requirements for procedures concerning the establishment of European Works Councils and their information and consultation in transnational issues, i.e. issues that have impacts on employees in the whole company or at least in two EU or European Economic Area (EEA) countries. The directive applies to companies with more than 1,000 employees.

The Commission gave the proposal amending the directive on 24 January 2024. The aim is to 
strengthen the role of EWCs by facilitating their creation, fostering more meaningful information and consultation, and ensuring that they have the necessary capacity to carry out their work. The amendments also aim to strengthen gender balance of EWCs and promote more effective implementation of the directive.

Government wishes to avoid increased administrative burden

The Government supports the aim of the Commission’s proposal to address the shortcomings observed in the application of the directive. In working life, the definition of transnational matters has not been fully clear, that is, what are the matters where the European Works Councils should be informed and consulted. The proposed directive aims to clarify this.

The Government also supports the aim of the proposal to improve gender balance in EWCs. However, it is also important that the proposal allows some flexibility so that matters such as gender distribution in different sectors can be taken into account.

The Government considers it important that the administrative burden and costs to companies will not become greater than what is necessary to achieve an effective and efficient information and consultation procedure. The Government has strong reservations about proposals that would impose obligations to central governing bodies of companies to allocate financial resources for judicial or administrative proceedings brought by EWCs or their members. 

The Government hopes that enough national room for manoeuvre will be left for Member States to implement the sanctions and obligations arising from violating the obligations laid down in the directive.

Parliament forms Finland’s position based on Government’s communication

On 4 April 2024, the Government submitted a Union communication to Parliament concerning the Commission’s proposal amending the EWCs Directive (2009/38/EC). The Government prepares Union communications on matters to be decided by the EU which, due to their content, would fall within the competence of Parliament if Finland were not a member of the EU. A communication describes the essential content and effects of the proposal and the Government’s position on the matter. Based on it, Parliament will form Finland’s position on the Commission’s proposal.

The proposed directive is currently being discussed by the Council of the European Union and the European Parliament. Once both have formulated their positions, they will begin trilogue negotiations with the Commission. The three bodies will preliminarily agree on the text of the directive, after which each of them will adopt the text.

Inquiries:
Elli Nieminen, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 056