Directive 94/45/EC, governing the establishment of European Works Councils (EWC) in multinational companies, has become much more than just another piece of EU legislation. To date in more than 820 companies an EWC has been established. After 10 years of attempts to amend the EWC directive (94/45/EC), on 6 May 2009 the European Parliament and the Council of the EU adopted a Recast Directive 2009/38/EC. The new directive is the outcome of an intense legislative process that took place throughout 2008.

By applying its requirements to the most powerful and influential enterprises active in Europe and worldwide an indicator is obtained of how many of these companies inform and consult their employees. The EWC Directive, which is applicable to transnational undertakings and groups of undertakings employing in total more than 1000 employees in the EEA, and at least 150 of them in two member states, has evolved to become an important gauge of compliance with the European standards and practices shaping the European Social Model.

The purpose of an EWC is to bring together employee representatives from the different European countries in which multinationals have operations. During EWC meetings, these representatives are informed and consulted by central management on transnational issues of concern to the company’s employees. Insofar as multinational companies develop strategies and production structures across borders, the meetings represent an important opportunity for local employee representatives to establish direct communication with central management and to cooperate with their colleagues representing employees from other countries.