Works councils

A works council (very rarely called "work council") is a "shop-floor" organization representing workers that functions as a local/firm-level complement to trade unions but is independent of these at least in some countries. Works councils exist with different names in a variety of related forms in a number of European countries, including Britain (joint consultative committee); Germany and Austria (Betriebsrat);Luxembourg (comité mixte, délégation du personnel); the Netherlands and Flanders in Belgium (ondernemingsraad); France (comité d'entreprise); Wallonia in Belgium (conseil d'entreprise) and Spain (comité de empresa).

One of the most commonly examined (and arguably most successful) implementations of this institution is found in Germany. The model is basically as follows: general labour agreements are made at the national level by national unions (e.g. IG Metall) and national employer associations (e.g. Gesamtmetall), and local plants and firms then meet with works councils to adjust these national agreements to local circumstances. Works council members are elected by the company workforce for a four-year term. They don't have to be union members; works councils can also be formed in companies where neither the employer nor the employees are organized.

Works council representatives may also be appointed to the board of directors.

As with co-determination, there are three main views about why works councils primarily exist: to reduce workplace conflict by improving and systematising communication channels; to increase bargaining power of workers at the expense of owners by means of legislation; and to correct market failures by means of public policy.

On 22 September 1994, the Council of the European Union passed a Directive (94/45/EC) on the establishment of a European Works Council (EWC) or similar procedure for the purposes of informing and consulting employees in companies which operate at European Union level.

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