Revision of Directive 2009/38/EC on European works councils

The EU internal market has, over the years, led to a 'transnationalisation' of companies and groups of companies, i.e. the expansion of their operations to multiple EU Member States. However, procedures for informing and consulting employees in the Member States are often not geared towards the transnational structure of the company that takes the decisions affecting those employees. This may lead to the unequal treatment of employees affected by decisions in the same undertaking or group of undertakings, and hamper workers' representation and social dialogue at international level. In 1994, the EU therefore adopted Directive 94/45/EC, requiring undertakings or groups of undertakings operating in two or more Member States to set up European works councils (EWCs). EWCs represent employees in multinational companies of a certain size and are intended as a platform for exchanges on transnational matters between employees and employers' representatives across EU Member States and European Economic Area (EEA) countries. In 2009, recast Directive 2009/38/EC (the EWC Directive) sought to address several shortcomings, counter the declining trend in the creation of EWCs and clarify several key concepts. However, a 2016 ex-post evaluation identified major weaknesses in the implementation of the EWC Directive regarding, among other things, the consultation process of EWCs and the means for workers' representatives to enforce their rights. In February 2023, the European Parliament called on the European Commission to revise the EWC Directive. Around a year later, on 24 January 2024, this call was followed up by a Commission proposal.