EWCs promote a shared understanding of the transnational challenges facing large multinational companies and the involvement of employees in the decision-making process.
On 2 February 2023, the European Parliament adopted a resolution calling for revising the European Works Council (EWC) directive to strengthen its function and increase its number while considering the member states' different industrial relations systems.
The Commission followed up on this resolution by launching a consultation among social partners before adopting a legislative proposal, which is expected by the end of 2023.
Business Europe, in its position paper, confirmed the Commission’s position that there is no need to revise the Directive, stating that EWCs’ functioning depends more on practical than legal matters.
Business Europe’s policy approach is to support operators to increase the number of EWCs. It encourages to improve their functioning by awareness-raising and capacity-building on the procedures and benefits of EWCs to employee representatives.
Business Europe proposed an alternative to the European Parliament’s resolution: a Commission Recommendation and a Code of Conduct.
However, Business Europe reaffirmed its commitment to constructively examine the possibility of proposing to the European Trade Union Confederation (ETUC) a negotiation to revise the EWC recast directive in social partner negotiations.
Following the second-stage consultation, social partners can negotiate to conclude an agreement under the Treaty on the Functioning of the EU (TFEU). The Commission could propose legislation, depending on the social partners' consultation outcome.