Information and consultation of workers across Europe: part two

In the second part of our comparative feature on information and consultation structures in individual European countries, we look at the situation in six countries, in addition to providing, in tabular form, an overview of systems across Europe.

The first part of this feature, looking at the situation in seven countries, can be found in Information and consultation of workers across Europe: part one. Below, we look in detail at Greece, Ireland, Italy, Luxembourg, Malta and the Netherlands as well as providing a general overview of provisions in all countries in table form.

GREECE

A solid legislative framework governs employee involvement in Greece. The main piece of legislation is Law 1767/1988 on works councils. The Greek government has ratified ILO Convention 135 concerning protection and facilities to be afforded to workers' representatives in the undertaking, and a range of additional legislative provisions oblige employers to consult the workforce on issues such as collective dismissals (Law 1387/1983), health and safety at work (Law 1568/1985), the protection of workers' rights in the case of company transfers (Presidential Decree 572/1988) and working conditions (Presidential Decree 17/1996).

In practice, however, the statutory provisions relating to works councils are not widely used, certainly in the private sector, due to opposition from trade unions.

Composition

Law 1767/1988 provides for the setting up of elected works councils in companies with 50 or more employees if there is a trade union present. If no union is present, the threshold is 20 employees. Law 1546/1985 provides for the setting up of a health and safety committee in companies of 50 or more workers, and for a safety representative in companies of between 20 and 50 workers.

In the case of a company with a number of establishments, if an establishment has fewer than 50 workers, they will be represented by the nearest company establishment with at least 50 workers. If an establishment has at least 50 workers, it may, under Law 1767/1988, set up its own works council.

There is no express provision for the setting up of central or group works councils. However, in a collective redundancy situation, Law 1387/1983 states that if more than one union is represented and there is no works council, there should be proportional representation of workers represented by all unions or all plants involved. If there are a number of establishments and there is not a works council in every establishment, all establishments should be involved proportionately. Similar provisions apply in relation to information and consultation in the event of company transfers.

Information and consultation rights

Greek law does not formally and explicitly define information and consultation. Where legislation transposes EU Directives, the text adheres closely to the definition given in the Directives. In general, workers have a right to be informed and consulted on a wide range of issues, including the economic and financial situation of the company, any current and anticipated developments related to employment, work organisation, and any proposed changes to the structure and legal status of the company, including: the full or partial relocation, expansion or reduction of production capacity; the introduction of new technology; training (if this is not explicitly stated in any legal text); annual investment planning for health and safety; and the planning of overtime work. In addition, employers have an obligation to inform and consult with workers on issues relating to collective redundancies, transfers of undertakings and health and safety, in accordance with EU Directives.

Law 1767/1988, article 13.3, states that there is a general obligation to hold meetings between the works council and the employer at least once a year. Further, there should be a joint meeting between the works council and the employer to discuss specific issues during the first 10 days of every second month (article 11). In the case of specific events, such as the planning of collective redundancies, Presidential Decree 572/1988 states that a special meeting should take place.

Confidentiality

The employer has no obligation to inform the works council about issues which are defined by law as confidential. These include those relating to banking, legal cases, matters of national interest and security and patents. Further, works council members have a duty not to disclose to third parties information about their company which may influence or negatively affect the competitiveness of the company.

Protection for employee representatives

General provisions contained in Law 1264/1982 setting out protection against dismissal for elected trade union officials also apply to works council members. This means that works council members are protected against dismissal or transfer for the duration of their term of office and for one year afterwards. Employers are also not allowed to intervene in or influence the election of works council members. Further, participation as a member of a works council is defined as a ground on which discrimination cannot be based.

Resources

Employers are obliged to provide office space and meeting rooms in order to enable the works council to carry out its duties. Any costs relating to the election of works council members are to be borne by the employer.

Sanctions

The heaviest penalties for contravention of the statutory provisions surrounding employee representation relate to protection against dismissal. If a person is found to have been dismissed unfairly, article 9 of Law 1767/1988 applies article 458 of the penal code, which provides for sanctions ranging from fines to a prison sentence of up to six months. In matters relating to the process and operation of works councils, article 16 of Law 1264/82 on trade union rights provides for fines.

Compliance

Although there is a comprehensive statutory framework governing the operation of works councils in Greece, in practice hardly any exist in the private sector. This is largely due to the fact that during the 1980s trade unions saw works councils as a potential threat to workplace trade union representation. In the public sector, however, works councils exist in companies such as the electricity production company DEH, the telecommunications organisation OTE and the water company EYDAP. However, the ongoing privatisation of public sector utilities means that in the longer term, these works councils are also likely to disappear.

IRELAND

There is no statutory obligation in Ireland requiring works councils or employee representative bodies to be set up in private sector companies. The only statutory provision in the general area of employee involvement is the Worker Participation (State Enterprises) Acts 1977 and 1988. The 1977 Act provided for the election of employees to the boards of seven state companies: the turf organisation Bord na Mona, the state national transport company Coras Iompair Eireann, the Electricity Supply Board, the state airline Aer Lingus, British and Irish Steam Products Co Ltd, the national sugar organisation Comhlucht Siuicre Eireann and the state fertiliser company Nitrigin Eireann. The Act was subsequently extended to other state enterprises - in 1983 provision was made for the election of employee directors to the postal services organisation An Post and Telecom Eireann (now Eircom), and in 1988 to the airline handling company Aer Rianta and the National Rehabilitation Board. This legislation provides that one-third of board members should be worker representatives and that, while trade unions would have the right to nominate candidates, the electorate would consist of all workers in the enterprise.

The 1988 Act also enabled sub-board-level participation structures to be set up in 39 state companies. It provided that management and employee representatives should devise arrangements for employee involvement which are acceptable to both parties, if the majority of employees wish this. The Act states that the information provided within this framework should be clear and reliable, that it should be given to employees in good time if it is likely to affect the interests of the workforce, and that the results of such meetings should be made known to all employees.

Information and consultation

The law does not specify the kind of information which employers must disclose to worker representatives. The only areas in which specific information and consultation rights are set out by law, both in the public and the private sector, are those covered by EU Directives, notably health and safety, collective redundancies and transfer of undertakings.

Although there is no statutory obligation for employee representative structures to be set up in the private sector, employee representation exists in the form of trade union representatives (shop stewards). Further, although there is no statutory requirement for employers to recognise trade unions, recent legislation (Ireland: Binding provisions of new Industrial Relations Act in place) has strengthened employee rights somewhat. If an employer refuses to adhere to a voluntary procedure in the event of a dispute over pay and conditions, the Labour Court can, in the final instance, issue a binding determination. In practice, this means that although this provision does not oblige employers to recognise trade unions, an employer will be bound by a determination governing a particular aspect of pay and conditions.

In addition, a number of so-called "partnership" arrangements at company level now exist in the public and private sector, encouraged within the framework of the Partnership 2000 tripartite national incomes policy agreement, which ran from 1997 to 2000. These are voluntary arrangements, providing for joint discussion of a number of issues affecting the workforce.

Protection for employee representatives

Trade union representatives enjoy protection against dismissal, in that dismissal on grounds of union-related activities is not legal.

ITALY

Employee representation in Italy is largely carried out within the framework of national interprofessional agreements. Legislation providing for the information and consultation of workers does exist, however, in those areas governed by EU Directives - collective redundancies, transfers of undertakings, and health and safety.

The 1970 Workers' Statute gave employees a right to set up representative bodies (rappresentanze sindacali aziendale, or RSAs, which were virtually identical to works councils in that they represented all workers, both unionised and non-unionised) in "units of production". This system was reformed by the framework agreement of March 1991 between CGIL, CISL and UIL, which created trade union employee-only elected workplace representative bodies (rappresentanze sindacali unitarie - RSUs)

This system was reinforced by the July 1993 social pact signed between the government and the social partners, which recognised the value of the 1991 agreement. The 1993 accord provided for the setting up of RSUs in companies of at least 15 employees, or five employees in the agricultural sector, on the initiative of either a national union, a workplace union or one which has signed a national agreement (CCNL) which covers the company in question. A total of two-thirds of the seats on an RSU are directly elected by the entire workforce. The remaining third is reserved for representatives of the union that has negotiated the relevant national agreement. The size of the RSU varies according to the size of the company, ranging from three representatives in companies of between 15 and 200 employees and increasing by three representatives for every additional 300 workers up to 3,000 workers, and then by a further three members for every additional 500 workers. The mandate for an RSU member is three years.

The 1993 accord also reinforced the point that there should be links between national-level organisations and company-level representatives and that information and consultation should take place at company level in order to deal with the social impact of developments such as economic crises and changes in the structure of companies, including mergers.

A number of national sectoral collective agreements provide for the setting up of employee information and consultation structures. The most notable example is the metalworking sector agreement, which provides for the right to company-level collective bargaining. Individual companies with tailored employee involvement arrangements in place include the white-goods manufacturers Zanussi and Whirlpool and suppliers of the motor manufacturer FIAT.

Information and consultation rights

There is no statutory right to general information and consultation and the RSU's rights in this area therefore depend on the provisions of the relevant national sectoral or company agreement. However, employee representatives have a right to be informed and consulted on issues such as the planning of collective redundancies, health and safety issues and business transfers.

Protection for employee representatives

Employee representatives enjoy general protection against dismissal and the trade union must agree to the transfer of an employee representative outside of the establishment.

Resources

Employee representatives have a right to time off to carry out their duties. The employer must put its premises at the disposal of employee representatives to allow them to carry out their duties. Training of representatives is provided by trade unions.

LUXEMBOURG

Composition

The establishment of employee representative structures is governed by statute in Luxembourg. Legislation adopted on 18 May 1979 provides that an elected works council should be set up in all companies of at least 150 employees. In smaller companies, of between 15 and 150 employees, a workforce delegation should be elected. Works councils are joint bodies, made up of elected workforce representatives and management representatives and chaired by the employer. Elections take place every five years and are held separately for blue- and white-collar workers. The most recent elections were held in 1998. Then, the OGB-L trade union confederation retained its position as the strongest union group by gaining 840 blue-collar and 435 white-collar seats, compared with 541 and 249 respectively in 1993.

The role of the delegation or works council is to defend the interests of the company's workforce in the areas of employment, job security and social issues. In 1998, almost 2,500 companies were covered by this legislation and some 145,000 workers were eligible to vote in workplace elections.

Information and consultation rights

The works council has a statutory right to be informed and consulted twice a year about the financial situation of the company, including on issues such as investments. They also have a right to be informed and consulted once a month on the operation of the company. In terms of employment, the works council has a right to information and consultation on an annual basis on the current and future development of employment and training. It also has a right to be informed in good time in the case of any envisaged training or retraining measures, any changes to the organisation of work or the planned introduction of new technology. It has a right to be informed and consulted about planned collective redundancies and in advance in the case of any employment- or structure-related decisions that would have an impact on the workforce.

Confidentiality

Employee representatives are bound to respect the confidential nature of business secrets or any information provided by the employer in confidence.

Protection for employee representatives

Employee representatives are protected against dismissal during their term of office and for a further six months following the expiry of their mandate. Candidates for election as employee representatives enjoy protection for a period of three months following the election.

Resources

Meetings of works councils may be carried out during working time. Further, there is provision for works council members to attend training during working time. All operating costs of the works council are borne by the employer.

MALTA

As Malta is not part of the European Union, it is not under any obligation to comply with the information and consultation provisions contained in the EU Directives on collective redundancies, transfers of undertakings or health and safety matters. There is no national legislation and no national structures exist in this area.

Information and consultation rights

Where information and consultation of workers exists, it is provided for by local-level collective agreement between employers and trade unions. There are no set rules governing the issues on which the workforce must be consulted. In most cases, information and consultation relates to developments in the area of employment, changes to the structure of the company, training, the organisation of work and collective redundancies.

There is almost no evidence of works councils and so information and consultation of workers is usually conducted by means of the union shop steward. In a case where consultation is required, the matter may be referred to the section secretary of the shop stewards' union, who would not normally be a company employee.

Resources

In general, shop stewards are allowed paid time and the facilities to carry out their duties.

NETHERLANDS

Composition

Employee representation in the Netherlands is governed by the 1971 law on works councils (Wet op de ondernemingsraden - WOR), most recently amended on 1 January 2000. This law provides for the establishment of a works council (ondernemingsraad) in companies with at least 50 employees (previously 100 employees before amendments to the law made in March 1998). In smaller companies, of between 35 and 50 employees, works councils may be set up on a voluntary basis. In companies of between 10 and 50 employees, the employer is obliged to give employees the opportunity to meet at least twice a year to discuss issues that affect the workforce. Further, the employer is obliged to consult employees when at least one-quarter of the workforce wishes.

In cases where the employer has two or more enterprises together employing at least 50 people, a common works council (gemeenschappelijke ondernemingsraad) must be set up. In the case where there are two or more works councils, a central works council should be set up, and where an employer has established two or more works councils in a number of enterprises, a group works council should be set up.

The works council is an employee-only body, made up of elected representatives. Its size depends on company size, ranging from five representatives in companies with between 50 and 100 employees, to 11 representatives in companies with between 400 and 600 employees, and 15 representatives in companies of between 1,000 and 2,000 employees, with a further two representatives per 1,000 additional employees, up to a maximum of 25 representatives. Works council elections are generally held every three years.

Information and consultation rights

The works council has a range of advisory, information and consultation rights, set out by the 1971 Law. Further, the agreement of the works council must be obtained in some areas before a management decision may be implemented.

The works council has a right, under the 1971 Law, to request any reasonable information. The employer is obliged by law to present the annual report to the works council and to inform it of developments relating to the finance and operation of the company twice a year. In terms of employment and general social issues in the company, such as training, the employer must give an annual report to the works council. In the case of changes to the structure of the business, the employer should inform the works council "in good time" about all decisions likely to affect the workforce.

In terms of consultation, the law provides that the works council should also be consulted on the issues on which it receives information. Before the 1998 legislative reforms, consultation took place six times a year. Now, it takes place whenever the employer and the works council deem it to be necessary. The works council may also take the initiative to ask the employer for consultation. In the case of some issues, such as recruitment, training and some investment, relocation and restructuring decisions which would have an impact on the workforce, the works council must be allowed to give an opinion. If the employer disagrees with this opinion, it must set out its reasons in writing and cannot proceed with the decision for one month. This, effectively, then, has the effect of delaying action by one month. The works council also has a right of appeal against employer decisions in such cases.

The works council has a form of co-determination power in that the employer must obtain the agreement (instemming) of the works council if it wishes to introduce or change a policy in the following main areas, provided no collective agreement already exists: pensions, savings or profit-sharing schemes; working time and holidays; pay or job evaluation systems; registration, handling and protection of personal data of employees; performance and presence monitoring; recruitment, dismissal and promotion policy; workforce consultation; and grievance procedures. If the works council refuses to give its approval to an employer request in these areas, the employer may appeal to a cantonal judge (kantonrechter). If an employer takes a decision in these areas without the agreement of the works council, it is null and void if the works council has lodged an appeal against the decision.

Confidentiality

The 1971 law states that all members of the works council, and any experts consulted, must respect the confidential nature of any information about the business given to them. This applies to all issues deemed to be of a confidential nature by the employer.

Protection for employee representatives

Employee representatives enjoy enhanced protection against dismissal. They can only be dismissed by mutual agreement, when the company or a part of the company is shut down, in the case of summary dismissal, or in the case of important reasons and approved by a kantonal judge. This protection extends to any employees who are involved in establishing a works council, those who stand for election (until the election is over), and applies to former works council members for two years following expiry of their mandate.

Resources

The works council may meet in paid working time and has at its disposal resources such as meeting rooms, telephones and stationery. Works council members are entitled to a total of five days a year for works council-related training. They may also carry out other duties, relating to liaison with the employees they represent, in paid working time. Works councils may also use the services of experts, paid for by the company, with advance notice.

Compliance

The legislation governing employee representation has been amended many times, most recently in 1998 and 2000, with the aim of clarifying a number of provisions and promoting the setting up of employee representation arrangements. In general, compliance is thought to be good - according to academic research issued at the beginning of 2000, some 84% of companies obliged to set up works councils under the legislation had done so.

Part three

Features of information and consultation systems in individual European countries

Country

Type of structure

Workforce threshold

Co-determination rights

Information rights

Consultation rights

Protection

Resources

Austria

Elected works council (employee-only).

Five employees.

Rest breaks, daily working time, payment systems, recruitment of temporary workers, social plan in redundancy, training and retraining.

Financial information, employment, including recruitment, changes to the business.

Financial situation, four times a year on employment. Consultation on planned changes to the business.

Dismissal only following a court ruling.

Paid time off to carry out duties. Full-time works council members in companies of at least 150 employees. Three weeks' time off for training per four-year term. Provision of meeting space and stationery.

Belgium

Works council (employer and elected employee representatives).

100 employees.

Formulation and change of employment conditions, planning of paid educational leave, management of day-care centres and canteens.

Financial data (basic dossier every four years, written report once a year plus up-to-date information four times a year). Employment situation, once a year plus quarterly updates. Planned changes to work organisation or structure of business.

Personnel policy, employment policy, vocational training and retraining measures. Consultation on planned changes to work organisation, new technology, production transfers, mergers, closures, redundancies and relocations.

Protection against dismissal beginning one month before and throughout term of office.

Paid time off, training, premises and other facilities, paid expert assistance.

Denmark

Joint cooperation committee.

35 employees.

None.

Six times a year on financial situation and forecasts, employment situation, work organisation, new technologies and changes to the structure of the business.

Six times a year on employment situation, work organisation and new technology. Consultation in advance of any decisions on changes to the structure of the business.

Covered by general dismissal protection for shop stewards. Extra notice period for representatives who are not shop stewards.

Employers to bear costs related to the co-operation committee. Meetings may be held in paid working time.

Finland

Employee representatives.

30 employees (20 for collective redundancies).

Employers must negotiate with employee representatives on issues such as changes which affect the workforce or proposed job cuts.

Financial information twice a year and immediately if there are any proposed changes. Information on envisaged changes to employment and training.

See Co-determination rights.

Protection against dismissal.

Paid time off to carry out representative duties. Many collective accords also oblige employers to provide facilities to enable representatives to function.

France

Elected works council (chaired by the employer).

50 employees (works council) 11 (employee reps).

None.

Basic information every two years, plus annual report on financial situation. Annual report on employment and oral monthly analysis. Information four times a year on changes to production methods.

Consultation on general financial management issues. Annual consultation on employment developments, health and safety and training. Prior consultation on decisions relating to structural changes.

Protection against dismissal - employee representatives can only be dismissed following consultation with the works council and authorisation by the Labour Inspectorate.

20 hours' paid time per year to carry out duties, which may be extended, plus time to attend meetings. Five-day training course in paid working time. Employer provides facilities for works council duties. Works councils financed by employer at 0.2% of the gross wage bill and may make use of experts.

Germany

Elected employee-only works council.

Five employees.

Co-determination in the operation of working time organisation, overtime, rest breaks, the administration of pay and benefit systems, health and safety, behaviour and performance monitoring, the introduction and operation of vocational training and the operation of teamworking.

Financial information once a year, plus development reports four times a year. Immediate information in the case of changes. Annual information on employment plus regular updates. Consultation on structural changes which affect the workforce, including mergers, transfers, closures and relocations.

Consultation in the event of financial changes and in the case of forecast changes to employment. Works council to be consulted and may make proposals in the areas of flexible working time, elimination of overtime, part-time working, phased early retirement, new forms of work, alternatives to contracting-out and guidelines for redundancy selection.

Dismissal only with the agreement of the works council. Protection continues for up to two years after expiry of mandate. Candidates for election to works councils also have protection for the following six months

Paid time off to carry out duties. Full-time officers in companies of at least 200 employees. Employer to provide facilities. Works council may make use of experts by agreement.

Greece

Elected employee-only works council and employee representatives.

50 employees (works council), 20 (employee representatives).

None.

Annual information on economic and financial situation. Information on any anticipated changes to employment. Prior information on changes to work organisation and changes to the structure of the business, such as mergers, closures and relocations.

Consultation on issues such as proposed changes to working hours and issues covered by EU Directives in area such as collective redundancies, business transfers and health and safety.

Protection against dismissal or transfer during mandate and for one year afterwards.

Employers provide facilities and time off to enable works council to carry out duties. It should be noted that very few works councils operate in the private sector.

Ireland

Shop stewards.

No threshold.

None.

Information is voluntary, except for obligations under EU Directives on collective redundancies, business transfers and health and safety.

Consultation is voluntary, with the exception of obligations under EU Directives on collective redundancies, business transfers and health and safety.

Protection against dismissal on grounds of union activities.

All provision of facilities by agreement.

Italy

Elected/nominated trade union representative bodies (RSUs).

15 employees.

None.

Information on collective redundancies, business transfers and health and safety. Other information rights contained in collective agreements at sectoral and company level.

Consultation on collective redundancies, business transfers and health and safety. Other consultation rights contained in collective agreements at sectoral and company level.

Protection against dismissal. Trade union must agree to transfers.

Time off to carry out duties. The employer must provide facilities.

Luxembourg

Joint works council, workforce delegations.

150 employees (works councils), 15 (workforce delegations).

None.

Annual report and information on financial situation. Information once a year on employment and training developments. Prior information on any anticipated changes to the business or the economic situation of the company which will affect employment.

Consultation twice a year on financial developments. Consultation once a year on employment and training developments. Prior consultation on all major planned changes, including redundancies, closures, transfers and relocations.

Protection against dismissal for works council election candidates (three months after the election), during the mandate of a works councillor and for six months afterwards.

Costs of works council to be borne by employer. Paid time off to carry out duties.

Netherlands

Employee-only elected works council.

50 employees.

Agreement of works council needed on a range of issues, including recruitment, redundancy, promotion, training, evaluation procedures, working time and holidays.

Basic financial information every two years, plus annual economic report and twice-yearly report on financial developments. Annual information on employment. Prior information on changes which affect the workforce.

Consultation on financial changes and investment decisions. Prior consultation on changes to work organisation, use of new technology, mergers, closures and relocations. Works council gives an opinion after consultation on investment decisions, recruitment and changes to business structure.

Dismissal protection for works council candidates, those in office and former officers (for a total of two years).

Works councils may hold meetings in working hours, members may attend a minimum of five paid days of training a year. Costs associated with works council borne by employer. Works council may be assisted by experts.

Norway

Joint work environment committee.

50 employees.

None.

Regular financial information; regular information on employment, training, work organisation and new technology. Prior information in the event of collective redundancies and business reorganisation.

Monthly consultation on employment issues and prior consultation on anticipated changes to the structure of the business, including transfers, mergers and changes involving redundancies.

Protection against dismissal and right to maintain employment conditions throughout mandate.

Paid time off to carry out duties plus time off for training. Employer to bear costs associated with running the committee.

Portugal

Employee-only elected workers' committee.

No threshold.

None.

Regular financial and economic information, plus regular employment information.

Consultation on social measures such as working conditions, changes to working time and holidays, relocations, changes to job classification and promotion systems. This consultation includes allowing the committee to formulate an opinion which the employer must consider before acting.

Protection against dismissal for workers' committee members, extending for five years after expiry of mandate.

Members may carry out duties in working time. Employer must bear the costs of the operation of the workers' committee.

Spain

Elected employee-only works council.

50 employees.

None.

Regular financial and economic information, plus information on development of financial and employment situation four times a year.

Prior consultation on proposed financial changes, consultation on training plans and on all employment structural change likely to affect employees. 15 days to formulate an opinion.

Protection against dismissal and discrimination on grounds of works council duties, during mandate and for one year afterwards.

Duties may be carried out in working time. Employer to provide facilities for the operation of the works council.

Sweden

Trade union representatives.

No threshold.

Obligation to negotiate on certain issues such as changes to business structure/investments, closures, mergers and relocations.

Regular information on financial and economic situation and employment. Information in the event of changes to the structure of the business.

See Co-determination rights.

Trade union representatives enjoy protection against dismissal and priority for being retained during redundancy selection.

Paid time off to carry out duties and provision of facilities. Unions may also have recourse to experts.

UK

Trade union representatives.

No threshold but right to trade union representation in companies of 21 or more workers if the majority wishes.

None.

Information rights in accordance with business transfers, collective redundancy and health and safety EU Directives. Right to be informed on training issues. Other subjects by agreement.

Consultation rights in accordance with business transfers, collective redundancy and health and safety EU Directives. Right to be consulted on training issues. Other subjects by agreement.

Dismissal on grounds of trade union membership or activities is unfair (not subject to usual one-year qualifying period for unfair dismissal). Prohibition of discrimination on grounds of union membership.

Union representatives have a statutory right to "reasonable" paid time off to carry out their duties and to undergo relevant training. Operation of this is clarified in an ACAS code of conduct.