Recast Directive on European Works Councils- the role of implementation
Journée d'étude du 24/04/09 Comité d'entreprise Européen
/ Studiedag van 24/04/09 -Europese Ondernemingsraad
Romuald Jagodzinski
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation3
New provisions / changes to the EWC directive Issue Article Recital Remarks
1 Transnational character of information & consultation / competence of EWC
1.2
10.1
12, 16 Transnationality / competence to collectively represent employees’ interests
2 Minimum burden on companies 2.1 g 9
3 Minimum limitation of decision making power of management
1.2 14
4 Information and consultation – definitions 1.2; 1.3; 2.1 f and g
14, 15, 21, 22, 23, 36, 37, 43
5 Relationship EWC – national bodies of information & consultation
12 21, 29
6 Information to commence negotiations for an EWC
4.4; 5.2 b and c)
25
7 Role of trade unions 2.2 c); 5.4 27
8 Termination & renegotiation clauses in agreements
6.2 g) 28
9 Select Committee 6.2 e) 30
10 Agreements in force and adaptation clause 6.2 g); 13; 14 39, 40
12 Content of agreements 6.2 b), c), e) and g)
13 Informing back employees 10.2; 12.2 33
14 Entitlement to training 12.4
15 Sanctions 36
16 Means for EWCs 10.1 Not only an EWC collectively, but its members
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation4
Legal nature of directive
● Directive● Sets goals for Member States (MS) without
prescribing concrete measures guaranteeing its attainment
● Measures leading to accomplishment of the given goals remain in competence of national authorities
● Directive ≠ regulation● Addresse are MS no direct application of the
directive (however ECJ Francovich v. Italy)● Requires implementation onto the national level
– various forms are possible (social partners agreement, act, provisions directly in labour code)
○ Absolutely crucial meaning for rights and obligations stemming from the directive
● Must be in line with the directive (goals)● Is the basis for EWC agreements
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation5
Implementation report on directive 94/45
● European Commission’s Implementation Report of 2000 (COM(2000)188):
● Generally a ‘very positive’ assessment of solutions applied by the MS
● „a number of minor discrepancies” between the directive and implementation acts
○ method of counting part-time workers
○ number of representatives in the SNB ○ a lack of detail (preparatory meetings)
● “In any event, these discrepancies must be interpreted as being in the spirit of the Directive.”
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation6
Implementation report on directive 94/45
● Issues needing "further interpretation“
○ the concepts of "controlling undertaking" and "expert",
○ the "effects of geographical and proportional criteria (presumably in relation to the allocation of SNB and EWC seats)
○ the conditions for renewing Article 13 agreements
○ the law applicable to agreements and their legal status
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation7
Background – Implementation report
● The Directive has been "smoothly integrated into the industrial relations systems of the different countries
● the report notes the possibility in some circumstances of "friction" between national and European - level employee representatives
● These issues can be resolved by the parties concerned or by the courts (!)
● a number of "legal and practical problems" (highlighted at the April 1999 conference on "European Works Councils: practice and development“)
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation9
Implementation report on directive 94/45
● Guarantees concerning law enforcement and access to justice for EWCs
● Commission’s report: shortly, superficially and descriptively
○ 3 areas● Confidentiality and sanctions for breach (point
3.9)● Generally penal and/or civil sanctions (damages)
● Penalties for breach of provisions of the transposition acts (generally) (point 3.11)
● Naruszenie porozumień zbiorowych (DK, SE)● Ogólne procedury prawa pracy
● Remedies = Jurisdiction / competence of courts (point 3.12)
● Lack of a thorough reflection + conclusions by the Commission
● Lack of corrective actions to remedy possible failures in implementation
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation11
Transposition acts as the crucial link between the EWC directive and EWC agreements
● Information and consultation is a form of the social dialogue
● Quality of the dialogue is a result of parties’ intentions and willingness
● EWC agreement is the primary source of EWC rights
● Key role of negotiations / renegotiations of agreements
○ According to the recast directive (EC) agreements (re)negotiated between announcement in OJ and implementation deadline out of scope of the recast directive
○ Recast will cover agreements after implementation deadline (may 2011?)
○ Adaptation clause of the art. 13 (recast directive)● Social dialogue can generate conflicts!● Role of institutions of law in enforcing, executing and
allowing access to justice in case of conflicts
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation12
ETUI Project “EWCs in court rooms across EU”
● 3 hypotheses:● weak and vague provisions of the EWC directive, and
consequently of national transpositions, can lead to court disputes
● in view of imprecise and incomplete provisions of the EWC directive(s) increased role of labour courts
● Claiming I&C laws strongly depends upon national enforcement measures and the quality of law
● Findings:● Over 50 cases of national litigation across the EU● Main objects of litigation:
○ Restructuring○ Withholding information + timing + content○ procedural issues (elections, mandate to represent)
● Tools:● Mapping EWC related cases in Europe● Mapping EWC legal standing in national
transposition law
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation13
Meaning of institutions of law in safeguarding compliance with the directive
Category of breach Possible sanctions
Le
ga
l p
ers
ona
lity
Ca
pacity to
act in
cou
rts
En
titlem
en
t to
sta
rt p
rocee
din
gs
No
crim
e
Off
ence
/in
frin
gem
ent
Cri
me
No
t sp
ecifie
d
Inju
nction
s /
S
um
ma
ry
pro
ce
du
res
fin
e /
fin
an
cia
l co
mp
en
sa
tio
n
imp
riso
nm
en
t
nu
ll an
d v
oid
NA
/ d
efine
d in c
ou
rt
Sanctions for breach of
confidentiality in EWC law Court costs
AT ● ○ ● ● ○ ● each party its own
BE ○ ○ ● ● ● ●
imprisonment usually the party that looses
BG ○ ○ ○ ● ○ ●
civil liability for damages free of charge
CY ○ ○ ○ ● ○ ● ● not known
CZ ○ ○ ○ ● ○ ●
normally by applicant (the Court Fees Act)
DE ● ○ ● ● ○ ● ● penal sanctions
(offence)
EWCs (similar to national works councils) exempted
DK ○ ○ ○ ● ○ ● as stipulated by
separate acts
EWC members individually / trade union
EE
○ ○ ● ● ● ●
not specified / not applicable due to procedure before Labour Inspectorate
ES ○ ● ● ● ○ ●
no court fees applicable
FI ○ ○ ○ ● ● ●
fine the party that looses
FR ● ○ ● ● ● ● ● ●*
civil penalties
if EWC wins employers claim costs
GR ○ ○ ○ ● ○ ● ●
each party its own; court fees upon application
HU ○ ○ ○ ● ● *** ●
court fees payable in advance by plaintiff/applicant
IE
○ ● ● ● ● ● ● penal sanctions (offence)
each party bears it's own costs; court fees payable upon application
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation14
IT ○ ○ ○ ● ○ ●
disciplinary sanctions
applicant upon starting procedures
LT ○ ● ● ● ○ ● not known
LU ○ ○ ○ ● ○ ● ●
upon order of court at the end of proceedings
LV
○ ○ ○ ● ○ ●
the party that looses / applicant upon submitting an application
MT ○ ○ ○ ● ○ ● not known
NL
○ ● ● ● ○ ●
Not stipulated / Court fees payable upon instituting legal proceedings / costs of legal proceedings by the loosing party
NO ○ ● ● ● ○ ● not known
PL ○ ● ● ● ○ ● ● criminal
sanctions
not stipulated / but EWC has its own budget (by law)
PT
○ ○ ○ ● ○ ●
civil penalties
Not stipulated / Court fees payable in instalments (first instalment payable upon application)
RO ● ● **
● ** ● ○ ●
offence as other breaches of EWC law
not stipulated but EWC has its own budget (by law) and is exempted from court fees
SE ● ● ● ● ○ ● applicant upon starting procedures
SK ○ ● ● ● ○ ●
applicant /plaintiff upon starting procedures
SL ○ ○ ○ ● ○ ● upon application / the loosing party
UK ○ ● ● ● ○ ●
Not stipulated / usually the party that looses
Category of breach Possible sanctions
Le
gal p
ers
ona
lity
Ca
pac
ity to
act
in c
ourt
s
En
title
men
t to
sta
rt p
roce
edi
ngs
No
crim
e
Off
enc
e/in
frin
gem
ent
Cri
me
No
t sp
ecifi
ed
Inju
nct
ion
s /
Su
mm
ary
p
roce
dure
s
fine
/ fin
anci
al c
om
pen
satio
n
imp
riso
nmen
t
nu
ll an
d v
oid
NA
/ d
efin
ed
in c
ourt
Sanctions for breach of
confidentiality in EWC law Court costs
Source: R. Jagodzinski @ etui (2009)
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation15
Differences in transposition of directive 94/45
Competence of ‘tribunals/courts/supervisory organs:
● Variety of solutions○ Courts: labour courts / civil courts (art. 13 AT) /
penal courts○ conciliation/arbitration bodies (NO, UK)○ Labour Inspectorates only (EE)○ control committees / special bodies (RO)○ ad hoc committees in ministry (IT)○ Not specified (LV, LT)
● Variable court competence depending on object of litigation (e.g. penal courts vs. civil courts)
● Variable court competence depending on type of agreement
○ Art. 13 – civil courts○ Art. 6 – labour courts / other
● Question ad. Recast directive:● Will the EC ensure proper implementation of access
to justice?● Ensuring execution of establishment of EWCs on
subsidiary requirements?
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation16
● Legal personality / capacity to act in courts● In 4 countries (AT, FR, DE, SE) EWCs have
legal personality● Capacity to act in courts in 9 countries (UK, IE, LT,
NL, LO, PL, RO, SK, ES, SE)● Entitlement to start legal proceedings: BE, EE
Conclusions:● the right to act in courts is guaranteed in 15 MS● 13 MS does not stipulate / guarantee access to
justice (!)● Recast directive art. 10: “(…) rights stemming
from this directive to collectively represent the interests of the employees”
Mapping EWC legal standing in national transposition lawDiversity of national solutions
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation17
Execution and enforcement of EWC lawSanctions
● Disproportion (?): sanctions for breach of confidentiality seem more stringent (penal sanctions; see Implementation Report 2000)
○ imprisonment, civil liability for damages, disciplinary santions
● Category of breach/infringement● Breach of I&C law not classified as offence or crime (CZ,
EE, FL, GR, HU, LV, LU, MT, NL, NO, SL, SE)● No crime – BG● Offence / minor infringement
● Variety of solutions○ fine (various limits)○ Detention / imprisonment (rare)○ Absence of the null and void sanction – only FR in
jurisprudence● Underdevelopment as compared to SE regulations
Lack of precision concerning sanctions- In 9 countries (AT, BE, BG, CZ, ES, HU, LV, NL, SK) sanctions are not defined in the act transposing the EWC directive - limited transparency / limited confidence in law / problems with assessing the possible outcome - lack of clearly defined sanctions might reinforce ignorant and persistent breach of law
Differences in scope of sanctions- minimum limit: 4 Euro (PL) and 290 (LT)- maximum limit: 1100 EUR (PL) vs. 15 000 EUR (DE)
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation18
● Costs of legal proceedings● Costs of registration / court fees● Legal counselling● Costs of court proceedings
● In all MS defined by reference to other acts ● Each party its own costs: AT, IE● The party that looses: BE , FL● Trade unions / EWC members individually: DK● Depending on courts decision● Exemption from court fees (ES, FR, DE)● EWC has own budget by law: FR, PL, RO
Mapping EWC legal standing in national transposition lawDiversity of national solutions
• Recast directive: major improvement in Art. 10:“(…) the members of the EWC shall have the means required to apply the rights stemming from this Directive to collectively represent the interests of employees …”
• The directive 94/45 does not guarantee coverage of costs of an EWC (only content of the agreement art. 6.2 f)• in BE transposition art. 42: “The operating expenses of an EWC shall be borne by the central management”•Lack of regulation of the question of costs of legal proceedings = lack of legal security / transparency
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation20
Conclusions
● Precondition for effectiveness of the new recast directive
● Proper and complete transposition
● Meaning of negotiated arrangementsArt. 9 of an EWC Agreement:
● “(…) The EWC shall be able to receive support…
● (…) The two parties recognise and declare that they proceed to the present agreement on good will (…). Nevertheless, they recognise that in cases where a legal procedure is necessary, always in relation to the Law, (…), the expenses for launching a legal procedure shall be covered by the Group under the condition that the latter shall be informed beforehand about this cost and that it only refers to procedures necessary for the application of the legislation provisions. Furthermore, it is understood and stated that the purpose of the present provision is not to constitute the issue of costs as prohibiting for the beginning of the procedure for the provision of decrees as these are foreseen by legislation.”
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation21
Conclusions
● Key role of the forthcoming implementation● Monitoring of government work on implementation
● Lobbying for effective, complete and transparent legal solutions
● Lobbying towards the EC○ Working Party for Implementation○ Special character of the EWC directive (social dialogue)○ Special position of social partners ?○ Qualitative counseling for MS on implementation ○ Monitoring of implementation works across the EU ○ possible corrective actions
● Special meaning of law enforcement and guarantees for access to courts
● Renegotiation of EWC agreements in the spirit of the recast directive
○ Special value of cooperation with EIFs
R. Jagodzinski © etui (2009) Recast directive on EWCs - the role of implementation22
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