Proposed directive on
information to and
consultation with
employees
This directive was first proposed back in 1998 and has been a priority for the
Swedish Presidency. An intensive period of negotiation led to a majority of Member
States agreeing on a text drafted by the Swedish Presidency on 11 June. Its background
lies in the closure of a factory in Belgium, where the company did not inform
or negotiate with the employees’ representatives. In the eyes of the Commission,
a number of incidents this year, such as the closure of Marks and Spencer outlets
in most of Europe and cutbacks made by Danone, have further highlighted the need
for this directive.
The directive includes minimum levels of information to and consultation with
employees that Member States should apply. The main aim is to create a dialogue
between employers and employees to ease the social consequences of restructuring
companies. While the substance of the directive has been agreed, its precise wording
is still subject to consultation and agreement by the European Parliament. The
directive would require all EU countries, including those with no such laws at
present, such as the UK and Ireland, to ensure that companies consult workers
before taking any decision which might lead to redundancies. It would also apply
to countries joining the EU.
The news contained in the
Newsbriefs section of The
Multinational is drawn from the News and Issues section of the Watson Wyatt website.
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