employee councils.. In european compames
Employee Councils in European Companies by Dr.jur. Walter Kolvenbach Attorney at Law, Dusseldorf 1978 Springer Science+Business Media, B.V.
Cover design: Pieter J. van der Sman ISBN 978-3-7875-4013-6 DOI 10.1007/978-1-4899-6122-8 ISBN 978-1-4899-6122-8 (ebook) Springer Science+Business Media Dordrecht 1978 Originally published by Kluwer, Deventer, The Netherlands in 1978 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the written permission of the publisher.
Contents PREFACE 13 INTRODUCTION A. Sociological and Political Philosophies B. C. Terminology and Definitions Trade Unions and Employee Councils D. Works Councils by Legislation or Agreement E. Works Councils and Collective Bargaining 15 17 19 21 22 23 II INTERNATIONAL ORGANISATIONS 25 International Labour Office 27 A. Recommendation No. 94 27 B. Expert Report June 1959 27 C. Technical Meeting December 10, 1959 28 D. Report 1962, jointly established with OECD 28 E. Technical Meeting November 20 to 29, 1967: Rights of Trade Union Representatives at the Level of the Undertaking 28 F. Technical Meeting November 20 to 29, 1967: Participation of Workers in Decisions within Undertakings 29 G. Oslo Symposium August 20 to 30, 1974 30 H. Summary 30 Annex: Recommendation No. 94, adopted by the 35th Session, June 1952 32 Organization for economic co-operation and development 33 I. Seminar on 'Prospects for Labour/Management Co-Operation in the Enterprise', October 24 to 27, 1972 33 II. 'Changes in Labour-Management, Relations in the Enterprise', OECD Publication Paris, 1975 33 III. 'Workers-Participation', International Management Seminar, Versailles, March 5 to 8, 1975 34 IV. Evaluation 35 5
CONTENTS European Communities 37 I. The Attitude of the European Communities towards Works Councils a. The 'Green Paper' 37 37 b. Opinion of the European Commission 37 c. Regulations for Employee Participation as Part of the Company Law? 38 II. Proposal for a Directive on the Harmonization of the Legislation of Member States on the Retention of the Rights and Advantages of the Employees in the case of Mergers, Take- Overs and Amalgamations 39 III. Multinational Undertakings and Community Regulations 39 N. The European Company 39 A. Establishment of Works Council 40 B. Composition of Works Council 41 C. Internal Organization 41 D. Powers and Duties of Works Council 42 E. Group Works Council 43 F. Conclusion 44 Annex: Extract from the Statute for European Companies 45 III STATUTES AND AGREEMENTS IN EUROPEAN COUNTRIES 57 Austria I. Historical Development of Works Council Laws 59 59 II. Works Constitution Act 1973 (Arbeitsverfassungsgesetz) 61 a. Definition of the term' Arbeitnehmer' 61 b. Establishment of Works Council (Betriebsrat) 61 c. Composition of Works Council 62 d. Election of the Works Council 62 e. Constitution of the Works Council 63 f. Privileges and Protection of Works Council Members III. Rights and Duties of Works Council 63 65 IV. Works Council Fund 66 V. Central Works Council 66 VI. Workers Assembly 66 Annex: Works Constitutions Act 1973 (Extract) 67 Belgium 81 I. The History of Relevant Legislation and Agreements a. The Enterprise or Works Council (conseil d'entreprise, 81 ondernemingsraad) 81 b. c. Safety and Health Committees Trade Union Delegations 81 82 II. Conseil d'entreprise (Ondernemingsraad) 82 1. Composition of the Conseil d'entreprise 82 6
CONTENTS 2. Election and Constitution 83 3. Rights and Duties of the Conseil d'entreprise 84 III. The Royal Decree of November 27, 1973 84 a. Basic information 85 b. Annual information 86 c. Periodic information 86 d. Occasional information 86 N. Comite de securite, d'hygiene et d'embellissement des lieux de travail 86 V. The Trade Union Delegation at plant level 87 VI. Conclusion 88 Annex: Arrete Royal portant reglementation des informations economiques et financieres Ii fournir aux conseils d'entreprises, 1973 89 Denmark 97 I. Legal Basis of the Samarbejdsudvalg (Cooperation Committee) 97 II. Composition and Election of Committees 98 III. Rights and Duties of the Committee 100 IV. The Cooperation Board 101 V. The Shop Steward 101 VI. Conclusion Annex: Agreement on Cooperation and Cooperation 101 Committees, 1970 103 Federal Republic of Germany 109 I. The History of Employee Representation in Germany 109 II. Works Constitution Act 1972 112 a. Definition of the term 'Employee' 112 b. Composition of Works Councils 112 c. Election of the Works Council 113 d. e. Constitution of the Works Council Rights and Duties of the Individual Works Council 114 Members 115 f. Rights of the Works Council as an Institution 116 A. General Rights 116 B. Rights of Information and Consultation 116 C. Co-Determination Rights 117 g. Economic Committee (Wirtschaftsausschuss) 118 h. Central Works Council and Concern (Group) Works Council 119 i. Youth Representation (Jugendvertretung) 119 j. Works Meeting (Betriebsversammlung) 120 III. Conclusion 120 Annex: Works Constitution Act 1972 (Extract) 122 Finland 145 I. Shop Steward 145 II. Production Committees 145 7
CONTENTS a. Composition of Production Committee 145 b. Election and Constitution 146 c. Rights and Duties of Production Committee 147 d. Central Advisory Commission for Production Committees 148 Annex: Act on Production Committees, 1949 no. 843. 149 France 153 I. The History of Employee Representation 153 II. Les Delegues du Personnel 153 a. Election 154 b. Organization of the Delegation 154 c. Rights and Duties 155 III. Comite d'entreprise 155 a. Composition 155 b. Elections 156 c. Organization of the Co mite d'entreprise 156 d. Functions of the Committee 157 e. Information Rights 157 f. Secrecy Obligation and Special Job Protection 158 IV. Section Syndicale d'entreprise 158 V. Future Development 159 Annex: Code du Travail, Tome I, 1975 (Extract) 161 Ireland 175 I. The position of Trade Unions in Ireland 175 II. Employer-Labour Conference: Sub-Committee on Workers Participation 176 III. Existing Works Councils in Ireland 177 a. Study of the Graduate School of Engineering Studies, b. Dublin Bewley's Cafes Ltd. 177 178 c. B&I Shipping 178 d. Albatross Fertilizer Company 179 e. James Boylan: and Son 179 IV. Shop Stewards 179 V. Recent Developments 180 Annex: Draft National Agreement on the Establishment of Works Councils (Employer-Labour Conference, Sub-Committee on Worker Participation) 182 Italy 185 I. Historical Development 185 II. The Internal Commission (Commissione interna) 186 III. Trade Union Delegations in the Enterprise 187 IV. Consiglio di Fabricca 187 Annex: Act. No. 300, 1970 (Extract) 189 8
contents Luxembourg I.. Historical Development of Employee Representation 191 191 II. Personnel Delegates (De16gues du Personnel) 193 III. Joint Committees (Comites Mixtes) 194 1. Establishment of Comites Mixtes 194 2. Composition of Comites Mixtes 194 3. Internal organization 195 4. Competence of Comites Mixtes 196 IV. Conclusion 197 Annex: Loi du 6 Mai 1974 instituant des comites mixtes dans les entreprises du secteur prive et organisant la representation des salaries dans les societes anonymes (Extract) 198 The Netherlands 203 I. Historical Development of Worker Representation 203 II. The Works Council Act 1971 204 1. Establishment of Works Council (ondernemingsraad) 204 2. Composition of Works Council 205 3. Internal organization 206 4. Power and Duties of Works Council 207 5. Rights regarding Company Institutions 208 6. Central Works Council 209 7. Trade Commission (Bedrijfscommissie) 209 III. Experiences with Works Council Act, 1971 209 IV. Project for Reform 210 Annex: Works Councils Act, 1971 (Extract) 212 Norway 221 I. Historical Development of Employee Representation 221 II. Legal Basis of Works Councils 222 III. Shop Stewards and Shop Steward Committee 223 IV. Works Councils 224 V. Cooperation Council 225 VI. Conclusion 225 Annex: Basic Agreement of 1974 (Hovedavtalen) (Extract) 227 Portugal 231 Present Situation 231 Annex: Works Council Act 1977 233 Spain 243 I. Introduction 243 II. Decreto of August 18, 1947 243 a. Composition of Joint Boards 243 b. Constitution of the Joint Boards 244 c. Rights and Duties of the Joint Boards 244 d. Internal Organization of Joint Boards 245 III. Future Development 245 9
COI',TENTS Annex: Royal Provisional Decree, December 1977 247 Sweden 253 I. Historical Development 253 II. Agreement on Works Councils of April 29, 1966 254 a. Introduction 255 b. Composition and Election of Works Councils 255 c. Rights and Duties 257 d. Works Representatives 259 e. The Labour Market Council 259 III. Agreement on the Promotion of Collaboration between Management and Employees of April 29, 1966 259 IV. Act on the Joint Regulation of Working Life of January I, 1977 260 V. Conclusion 262 Annex: Agreement on Works Councils between SAF and LO, 1966 (Extract) 264 Switzerland 273 I. History of Employee Representation 273 a. Statutory Requirement of Employee Consultation 273 b. Historical Development of Contractual Arrangements 273 c. Legal Qualification of Worker Commissions 274 II. Contractual Basis of Employee Councils 274 III. Common Principles of the existing Commissions 275 a. Names used 275 b. Composition 276 c. Competence 276 IV. Details of some Existing Collective Agreements 277 a. Machinery and Metal Industry 277 b. Special Rules in this Agreement 278 c. Printing Industry 278 d. Chemical Industry of Bale 278 e. Chocolate Industry 278 f. Cotton Industry 279 V. Future Development: Stronger Contractual Basis for Employee Representative Institutions? 279 Turkey 281 I. Trade Union Representatives in the Enterprise 281 II. Committees established by the Turkish Labour Code 283 a. Commission for Decisions on Closing of Factories 283 b. Commission for the Health of the Employees and for Work Security 283 c. Vacation Committee 284 III. Contractual Employee Representation 284 IV. Conclusion 284 10
CONTENTS United Kingdom I. Historical Development a. Shop Stewards before the First World War b. The Clyde Committee c. The Whitley Committee d. The Importance of Local Worker Committees II. Shop Steward a. Definition of the Term 'Shop Steward' b. The Role of the Shop Steward c. Facilities for Shop Stewards d. Election, Function, Responsibility e. Training III. Joint Consultation a. General Remarks on Works Councils b. Study of the British Institute of Management c. Industrial Participation Organization d. The Industrial Society e. The Glacier Works Cquncil IV. Confederation of British Industry V. The Attitude of the Trades Union Congress VI. Summary 287 287 287 288 288 289 290 290 290 291 292 292 293 293 293 294 294 295 295 296 297 IV DEVELOPMENTS OUTSIDE OF EUROPE A. North America B. Latin America a. Bolivia b. Chile c. Mexico d. Peru e. Venezuela C. Africa a. Algeria b. Iraq c. Israel d. Malagasy Republic e. Morocco f. Sambia g. Tanzania h. Tunesia D. Asia India E. Australia 301 303 305 306 307 307 308 309 309 309 310 310 311 311 312 312 313 313 313 314 11
CONTENTS V OVERVIEW AND CONCLUDING REMARKS 317 A. Preconditions for the Effective Functioning of Works Councils 319 B. Two-Channel Representation 320 C. Legal Basis of Employee Councils 321 D. Different Forms of Employee Councils 321 E. Different Rights and Tasks 322 VI EMPLOYEE COUNCILS AND WORKERS' DIRECTORS 325 VII OUTLOOK AND REGISTER OF LEGISLATION 329 12
Preface Employee representative institutions at the shop floor exist in various forms in all European countries. New and revised regulations are either being discussed or enacted. The degree of workers' participation in the decisionmaking process - either at the workplace or in the corporative organs existing under national company laws - has become a permanently debated sociological and political issue. In the course of these discussions it became apparent that employee membership in supervisory boards or boards of directors cannot be solved isolated from co-determination problems affecting directly the workplace. This workers' participation in corporate affairs must start at the bottom and grow upwards. This has focused the attention again on the sub-structures at the shop floor level and the involvement of workers in these participative institutions. In this book the author attempts to give an overview of the legal problems connected with works councils, employee councils and similar bodies in European companies. All existing statutes and agreements, on which these institutions in Europe are based have been summarized and as far as possible only literature in English has been used. I would like to thank all my colleagues who have assisted me in collecting the material and literature for the countries included in this study. I am especially grateful to the International Labour Office in Geneva for the permission to reprint the English translation of the relevant laws from the Legislative Series. 13