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