Government responses
Attempts to get more information
from multinationals
1980s European Parliament adopted
Vredeling Directive
Pushed most heavily by IGMetall
Requires multinationals to
provide variety of information on global operations
including
Plans for closures and
layoffs
New technology and product
lines
Watered down considerably with strict secrecy requirements
Information largely limited to that available to stock
holders
Financial situation &
marketing strategies
INFORMATION GIVEN TO APPROPRIATE
UNIONS
UNIONS ALSO GIVEN RIGHT TO
CONSULT DIRECTLY WITH PARENT COMPANY ON
CERTAIN ISSUES AFFECTING JOBS
FAILURE TO PROVIDE ANY OF THIS
WOULD ALLOW THE UNION TO GO TO COURT IN
ANY EU COUNTRY
1994 European Works Council
Directive
Requires European Works Councils in companies of 1000 employees
with at least 150 in each of two EU states
Not as powerful as German Works Councils but entitled to
information and consultation
Over 150 US owned
multi-nationals have complied and set up such councils including Ingersoll Rand, GM, IBM, and Citibank
June 2001 European union issued guidelines (to begin to come into
force in 2004) strengthening the obligation of European companies to “inform
and consult” worker representatives about company strategy
To begin to come into force in 2004
Reduces size of covered companies, by 2008 all companies with 50
or more employees will be covered
British and Irish had fought this initiative for several
years
Directive includes consultation on any significant decision
involving restructuring or changes in work organization
(only if giving 2 classes) Companies can protect confidential
information but must demonstrate that the release of this information would be
harmful
EU has attempted to adopt
uniform minimum standards on worker participation
and equal opportunity but these require unanimity and British have refused to participate