EWCs and transnational restructuringEWCs and transnational restructuring

Brussels Week in European Labour LawBrussels Week in European Labour Law

23 February 2009 – 26 February 200923 February 2009 – 26 February 2009

Jean Monnet Chair in European Labour Law (UvTilburg)Jean Monnet Chair in European Labour Law (UvTilburg)

Dr. Christian WelzDr. Christian Welz

European Foundation, DublinEuropean Foundation, Dublin

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OutlineOutline

I. Existing evidence

II. Content of agreements

III. Joint texts

IV. Evidence from practice

V. Conclusions

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I. I. existing evidenceexisting evidence

content of agreements establishing EWCs

joint texts signed by EWCs and management

academic literature on role of EWCs in restructuring

evidence on practice from case studies and reporting

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II. II. EWC agreementsEWC agreements

80% of agreements provide for I&C at regular meetings on topics relevant to restructuring

specific restructuring-related topics also on agendas of regular EWC meetings

in exceptional circumstances, management usually obliged to inform EWC/select committee, which can then request meeting these circumstances refer essentially to transnational

company restructuring

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II. II. EWC agreements/SDA databaseEWC agreements/SDA database(total of 710 agreements)(total of 710 agreements)

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II. Provisions that may hinder I&CII. Provisions that may hinder I&C

clauses defining ‘transnational’ nature of matters falling within EWC’s remit

excluding matters dealt with by national-

level processes frequent absence of requirement for I&C to

occur in good time role given to EWCs is in most cases I&C, defined

as ‘dialogue’ or ‘exchange of views’ only small minority of agreements provide for

in-depth consultation or negotiation

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III. III. EWC joint textsEWC joint texts

some EWCs have developed a negotiating role and signed joint texts

joint texts on restructuring:

constitute negotiated responses to a specific

Europe-wide restructuring exercise

lay down rules and guidelines to apply generally

to restructuring, or

touch on restructuring briefly or in general

terms, as part of wider CSR initiative

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III. III. EWC joint textsEWC joint texts

a total of 19 joint texts (2006) make reference to corporate restructuring:

Axa, Danone (3), Deutsche Bank,

Dexia, Diageo, EADS, Ford (2),

GM (4), PSA, Renault,

Suez Lyonnaise des Eaux,

Total, Unilever

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III. III. Joint texts – general rulesJoint texts – general rules

lay down principles to govern handling of restructuring

lay down guarantees for employees affected by restructuring

e.g. job security, avoidance of compulsory

redundancies, maintenance of pay and

employment conditions set out accompanying measures such as

retraining or redeployment

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III. III. Joint texts – general rulesJoint texts – general rules

avoid future employment problems through forward-looking training/employability policies

focus on reducing negative employment effects

redeployment and retraining

cutting compulsory redundancies include rules on information, consultation and

negotiation - generally implemented by national-level bargaining

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III. III. Joint texts – ‘IFAs’Joint texts – ‘IFAs’

of the 53 IFAs – 13 have been co-signed by EWCs (April 2007)

Hochtief, VW, DaimlerChrysler, Leoni, GEA,

Rheinmetall, Bosch, SCA, Prym, Renault,

Röchling, BMW, EADS

30 IFAs make references to restructuring e.g., EADS, Renault, PSA, Suez commitments to try to maintain employment

and avoid or mitigate job losses plus information and consultation over

restructuring

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Global Union Federation Number of signed IFAs Number of IFAs co-signed by the EWC

International Metalworkers’ Federation (IMF) 15 11

Building and Wood Workers’ International (BWI) 12 1

International Federation of Chemical, Energy, and Mining Workers (ICEM)

11 1

Union Network International (UNI) 11 0

International Union of Food, Agriculture, Hotel, Restaurant, Catering, Tobacco and Allied Workers (IUF)

4 0

TOTAL 53 13

III. III. IFAs – ‘GUFs/EWCs’IFAs – ‘GUFs/EWCs’

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III. III. EWCs and IFAs’EWCs and IFAs’

EWCs can support IFAs important role in initiating an IFA and its installation

signatory role varies and is connected to an unclear legal position

therefore EWCs might see IFAs as stepping stones towards global forms of dialogue/negotiation/IR

two important impacts: IFAs might strengthen the position of EWCs as partners

of dialogue and (potentially) negotiations

IFAs will lead to a closer link between EWC and Global Union Federations / EIFs/ Networks

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IV. Evidence from practiceIV. Evidence from practice

European Foundation _41 cases

information provided by management generally

good

consultation took place at the point at which, or

after strategic decisions were taken

in the minority of cases, where employees reps

influenced transnational decisions, it was over the

implementation

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IV. Evidence from practice - generalIV. Evidence from practice - general

most EWC discuss specific restructuring moves at both regular and extraordinary meetings

EWC’s role is communication, or ‘consultation’ in

directive’s sense only minority of EWCs exert any influence on

company restructuring

helping ensure that employment/social aspects are

taken into account

clearest expression is joint texts

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IV. Evidence from practice – factors IV. Evidence from practice – factors influencing EWC involvement - 1influencing EWC involvement - 1

type of restructuring content of EWC agreement timing of I&C facility for extraordinary meetings, or ongoing

communication between management and employee representatives

active select committee especially important

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IV. Evidence from practice – factors IV. Evidence from practice – factors influencing EWC involvement - 2influencing EWC involvement - 2

management views on EWC and its role organisation and coordination of the

employee side outside the EWC organisation and integration of company

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IV. Evidence from practice – complicating IV. Evidence from practice – complicating or hindering factorsor hindering factors

definition of restructuring as ‘transnational’ tension betweens national/local and EU levels strong channels of communication, negotiation etc. at

national level (esp. in home country) network of relationships between management, unions

and employee representatives,

with real employee influence away from the EWC, often at

national level restructuring where national operations are in

competition, weakening employee-side ability to influence – ‘playing off’

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IV. Evidence from practice - EWCs’ IV. Evidence from practice - EWCs’ general capacity to act and influencegeneral capacity to act and influence

many EWCs largely ‘symbolic’, some have more active and influential role key factors:

nature of business operations and degree to

which integrated and internationalised

management structure and policy

nature of pre-existing of employee

representation structures

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V. ConclusionsV. Conclusions

active EWC involvement in transnational corporate restructuring with influence on decisions

seems to be a minority practice

determined by combined factors relating to the company concerned its management the organisation and coordination of the

employee side the EWC’s constitution and operation