Parliament: Resolution on ECS worker involvement
On 14 May the EP examined the proposed Directive on worker involvement in a European Cooperative Society, making some amendments to the text.
The Council Regulation on a statute for a European Cooperative Society (ECS) and the accompanying Directive on worker involvement in a European cooperative society, originally issued in 1992, was revitalised in 2001 following agreement on the Regulation on a statute for a European company and its accompanying Directive on worker involvement in 2000 and final adoption in October 2001 (European Company Statute adopted).
Although the EP had given an Opinion on the original draft of this text, the content has changed since its revival and so the social affairs Council decided in June 2002 to reconsult the EP.
After examining the text, the EP makes a number of amendments which it asks the Commission to take on board. The EP argues, in contrast to the Council's view, that article 137 is appropriate. This article is subject to the co-decision procedure, which gives the EP and the Council joint decision-making powers. Currently, the proposal is based on article 308, under which the EP has a consultative role only.
It adds a recital stating that where there are substantial structural changes following the creation of an ECS, member states should ensure that arrangements for the involvement of employees are renegotiated. It also states that the national implementing provisions of this Directive should be coordinated and harmonised.
It provides a revised and more succinct definition of participation as "the representation of employees on the administrative or supervisory organ, or any other form of employee influence on the management of a legal entity", also reflecting the fact that participation is an ongoing task, rather than a one-off right to nominate representatives.
In relation to elections of employee representatives, it adds a sentence promoting gender balance and also states that, unless otherwise provided by agreement, election or appointment to ECS administrative or supervisory organs should take place according to the national customs or legal provisions of the member states governing the election or appointment of employee representatives to national cooperatives or, in their absence, according to relevant provisions applicable to joint stock companies.
It also amends the article relating to the decision on whether to open negotiations for an agreement on worker involvement in the case where the standard rules are applying. The Council's proposal is that a decision should be made four years after the representative body is established. The EP has amended this to not later than fours years after its establishment, or in the case of substantial structural changes within the ECS.
It also deletes a clause allowing members states to opt out of employee participation where an ECS is established through the merger of two cooperatives.
Under the consultation procedure, to which this proposal, under article 308, is subject, the Council is not obliged to take on the EP's amendments. At its meeting on 3 June, the Council reached political agreement on the text, incorporating many of the EP's amendments.
