The EMF Company Policy Committee Principles and goals EMF Coordinators seminar Luc TRIANGLE Company Policy Committee European Metalworkers’ Federation Bad Hofgastein, November 2009

EMF Company Policy: main goals Defend the interests of employees in MNC Give them the tools to deal with transnational strategies of MNC Coordinate national trade union strategies Develop common positions and common policies From EMF EWC Task Force (1994) to EMF Company policy Committee (2003) Bad Hofgastein, November 2009

The start / evolution of Company Policy coordination -80’s – early 90’s : trade union coordination in some TNC’s : Philips, Alcatel, Siemens, Alsthom,… -First informal EWC’s : Thomson, SKF, … (80’s) -EWC Directive Establishment EWC Task Force 1994 (till 2003) : quick response, English, costs paid by trade unions, high participation -EMF Company Policy Committee 2003 : more then EWCs, political committee Bad Hofgastein, November 2009

EMF Company Policy: key actors - Affiliated organisations - EWC - Employee representatives in company decision-making bodies - EMF coordinators - Company policy committee and EMF Secretariat Bad Hofgastein, November 2009

EMF Company Policy: core activities European Works Councils (1994) - Binding guidelines (1996/2001) - Revision of the EWC Directive (2009) EMF coordinators for EWC (2000) The SE and workers’ involvement (2001) How to deal with transnational (2005) restructuring: the EMF way Transnational negotiations at company level (2006) Bad Hofgastein, November 2009

Information and consultation at EU level: the EWC directive Information & consultation of workers is a high priority at European level: –Workers’ involvement is a common feature in European Countries –Transnational Social Dialogue –Internal Market –Internationalisation of economies and companies Demand for more than 25 years First experiences : 80’s (Thomson, VW, Renault, SKF,...) Directive 94/45 approved on Scope: the European Economic Area (EEA) EWC : European trade union work at company level Bad Hofgastein, November 2009

Information and consultation at EU level: the EWC directive – EMF Policies European approach instead of national approach Pro-active approach: initiate negotiations Strong coordination - binding guidelines through the negotiation process (minimum rights guaranteed) - EMF expert present at negotiations - Task Force / Company Policy Committee Bad Hofgastein, November 2009

EWC: State of Play 800 agreements – 348 in the metal (63 obsolete) > 60% of the workforce in MNC 60 ongoing negotiations + renegotiations : make EU enlargement a reality for EWCs.EWC concerned in the metal sector: 160.All EWC enlarged but not all seats taken Bad Hofgastein, November 2009

EWC agreements: EMF Binding Guidelines The EWC agreement: the basis See EMB website Works-Councils/EMF-guidelines-in-EWC-negotiations Information and consultation rights Exceptional circumstances : what is the role of the EWC ? (Vilvoorde court case) role of the select committee and facilities role of the expert and coordinator translation Integration of CEE Countries control on agenda, minutes and process training Communication Bad Hofgastein, November 2009

The role of EWC and practice Information and consultation Role in case of restructuring / exceptional circumstances EWC is about transnational and strategic issues Role and challenges for employees representatives: understand strategic information, develop a European approach, act as one group (get to know each other), develop communication, report back Bad Hofgastein, November 2009

The role of EWC and practice Differences in social dialogue create different expectations and misunderstandings Non union members ? Role of management The Recast (revision ?) of the EWC Directive : new opportunities ? Bad Hofgastein, November 2009

Composition of body only mix Bad Hofgastein, November 2009

Revision of the EWC Directive Finally changes in the Directive 1994 !!! New rules… in establishing new EWCs Responsibility of local management in information to give SNB setting up Information to European social partners Role for trade unions where wished by SNB Before that : Window of 2 years to conclude new agreements or revise existing agreements establishing EWCs : the new rules will not apply to those companies. Bad Hofgastein, November 2009

Revision of the EWC Directive Revision of the EWC Directive New rules… in the operation of EWCs Principle of effectiveness… Definition of information and consultation Transnational competence Link national / European Adaption clauses and procedure in case changes in make – up Collective representation, training, report back of employee representatives Bad Hofgastein, November 2009

Revision of the EWC Directive Revision of the EWC Directive No changes… in the legal framework for…. The scope (thresholds, control) The priority given to negotiation at company level Companies with present art 13 agreements, except for the adaptation clause Companies concluding or revising agreements in the 2 y implementation period, except for the adaptation clause Bad Hofgastein, November 2009

EMF EWC Coordinators From 2000 onwards : also focus on existing EWC agreements See EMF website : work/Company-Policy/European-Works-Councils/EMF-resolution-on- the-role-of-EMF-coordinators Objective : EWCs should become real European information and consultation bodies, with trade union (EMF) influence, support and guidance How? By designating an EMF Coordinator for every existing EWC Bad Hofgastein, November 2009

EMF EWC Coordinators: their role Must know what happens in his/her EWC First contact for other unions Support and guide for EWC members Give a TU persepctive Safeguard the general interest of European workers Promote EMF policies towards existing EWCs, CB, IP Role in exceptional circumstances Link between EWC(members) and EMF Bad Hofgastein, November 2009

EMF EWC Coordinators Profile : Good understanding of EMF activities and political views Preferably a trade union officer Designation : Preferably from the country of the headquater Nomination endorsed by the Executive Committee Expert clause = EMF coordinator Bad Hofgastein, November 2009

EMF EWC Coordinators A positive evaluation: One (EMF) approach towards existing EWCs Relay and contact point for EMF activities (sectors) EMF Ambassadors in the existing EWCs and for the 5000 to 6000 individual members Role accepted An increased role in restructuring case Practical functioning varies A STRONG POLITICAL SIGNAL ! Bad Hofgastein, November 2009

EMF EWC Coordinators Support EMF EWC coordinators A role for the EMF: Support and promote EMF coordinators on a day to day basis Training Continuous flow of information on EMF decisions, opinions and activities A role for national trade union organisations Bad Hofgastein, November 2009

The SE and workers’ involvement ●Societas Europaea: a company based on European law: regulation and directive But also partly national laws Information & consultation But also high level of workers’ involvement through participation Bad Hofgastein, November 2009

Représentation au conseil d'administration ou de surveillance Vertretung im Aufsichts - / Verwaltungsrat Verwaltungsrat Representation on board of directors or supervisory board Bad Hofgastein, November 2009

public Bad Hofgastein, November 2009

The SE: the EMF strategy European approach instead of national approach Strong coordination - binding guidelines through the negotiation process (minimum rights guaranteed) - EMF expert - Company policy Committee and affiliates concerned Bad Hofgastein, November 2009

The SE: the EMF strategy Guidelines on procedure and content (adopted by the Executive Committee in June 2003) Many references to the EWC Guidelines Additional aspects: - Participation: no opt-out - Selection of employee board members = A European mandate (EMF & affiliates) - Choice of the EMF expert to assist the SNB - Working structure with involvement of all actors - Better recognition of trade unions - Financial regulation Bad Hofgastein, November 2009

How to deal with transnational restructuring: the EMF way Change = A permanent feature EMF position: ensure socially responsible restructuring National solutions are not sufficient any more Pressure from the employers to play off workers against each other  Only one response = a European response via coordinated and common strategies + secured trade union and workers unity To ensure socially responsible management of restructuring Increasing number of company cases (GME, Electrolux, Arcelor…) – learning from experiences Bad Hofgastein, November 2009

How to deal with transnational restructuring: the EMF way The principles : Complementary between EWC and TU: Anticipation and full transparency of information Information/consultation at European level European trade union coordination European platform (industrial and social aspects) European framework agreement (solutions acceptable for all) European mobilisation (in line with national practise) Bad Hofgastein, November 2009

How to deal with transnational restructuring: the EMF way EMF Handbook on how to deal with transnational company restructuring See website : Handbook-on-how-to-deal-with-transnational-company-restructuring The EMF approach on Transnational Restructuring Categories of European law related to company restructuring Directives on information and consultation Social Directives Economic Directives and Regulations The EU Merger Control Regulation Legal Procedures And EWC´s National Tools for dealing with Restructuring Bad Hofgastein, November 2009

Conclusions Pro-active approach: Anticipation of change : Improved social dialogue to limit negative impact on employment Anticipation of skills needs Promote life-long-learning Promote positive mobility Challenges : ● Strengthen the European solidarity ● Need to find common answers and common interests ● Express ourselves with one voice Bad Hofgastein, November 2009

European company level negotiations ● Increasing number of texts discussed or negotiated at European level in MNC (EWCs) CSR, restructuring issues, IFAs … Negotiations are trade union business. EWC cannot do all at European company level Ensure trade union involvement (tucg) Close cooperation with EWC Ensure positive development of SD: - Improvement of working conditions - Towards harmonisation Bad Hofgastein, November 2009

European company level negotiations EMF practice becomes policy (Ex Com June 2006) –Internal procedure for negotiations at MNO level –Valid for all negotiations (outcome is signed agreement) – Not limited to collective bargaining > also restructuring Bad Hofgastein, November 2009

European company level negotiations Step 1 information & start –Written information to all trade unions (members of EMF) represented in MNC Step 2 mandate for negotiations –Mandate on case by case (no topic outline in internal procedure): trade unions decide. –Mandate paper (what, outline, composition small and large negotiating (consultation) group, procedure, …) Mandatory for composition neg. group, mandatory for inclusion external EMF representative Bad Hofgastein, November 2009

European company level negotiations Step 2 mandate for negotiations –Mandate given by trade unions involved (members) Preferably unanimous If not then with 2/3 majority in each country (following own practices and traditions: e.g.: Scandinavia on basis of membership figures, France on basis of mandates in company) One country can block decision to start negotiations unless they represent maximum 5% of employment in company –Mandate is verified by EMF Secretariat on compliance with EMF policy guidelines. Bad Hofgastein, November 2009

European company level negotiations Step 3 Continuous general information –Secretariat informs Executive Committee and the relevant Policy Committees (mainly Collective Bargaining and Company Policy, could include Industrial Policy Committee) Step 4 Consultation & Decision –Small group consults with complete negotiating / consultation team –Draft agreement is approved by trade unions involved –Decision with 2/3 majority in each country (following own practices and traditions) One country (whatever size of employment they represent) can block decision sign agreement Bad Hofgastein, November 2009

European company level negotiations Step 5 Signing and implementation of the agreement –Agreement is signed by the GS, the DGS or another person specifically mandated by them –All trade union involved shall implement the reached agreement in accordance to their national practices –The signature on the agreement is valid for those trade unions at that moment represented in the company. (Mergers or acquisitions have to be renegotiated) Step 6 Final Information –Full information on the agreement and the signing shall be given to the executive committee and all relevant policy committees Bad Hofgastein, November 2009

European company level negotiations COMMISSION INITIATIVE ON TRANSNATIONAL SYSTEM OF COLLECTIVE AGREEMENTS Commission wish to create legal framework for European agreements at company level Based on obstruction employers: put on small fire > long term → IMPORTANCE TO SHOW THE CORRECT WAY Bad Hofgastein, November 2009

European company level negotiations First experiences : – Areva – Schneider – ArcelorMittal –ABB –Thales Evaluation of the procedure: EMF EXEC COM June 2008 Bad Hofgastein, November 2009