III- Government responses - EU
•1982 European Parliament adopted Vredeling Directive
•1994 European Works Council Directive
•1998 EU adopted policy for all large employers, not just multi-nationals, to inform employees of their financial status and of employment developments
•June 2001 European union issued guidelines strengthening the obligation of European companies to “inform and consult” worker representatives about company strategy
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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