Works Councils?

[Lou Scannon]

Sunday Times 6th July 2003.

"Firms in Britain will be forced to set up European-style works councils and consult them on redundancies, changes in ownership and a wide range of day to day management issues"

Does anyone have any experience of how well these councils work in Europe and whether they contribute to the well being of the company and employees? What will the companies without union representation do?

Would anyone care to suggest which UK company will be the last to implement the new policy and perhaps be prepared to pay the fines rather than make the changes?

[Alpine Flyer]

Works councils work rather well in bigger Austrian and German corporations. In Austria they have about the role an MEC has in the US, i.e. they're the local part of the union. Union committees are "manned" by works council members from various companies.

With start-up companies and smaller companies there usually is some pressure not to elect a works council or there may be efforts to elect a "hand-picked" council which consists of managment-influenced members.

In Austria works councils have quite an influence. They have to be informed about everything that goes on in the company, no redundancies or promotions may be declared before hearing the works council, they have 1/3 of the supervisory board seats if the company has a supervisory board, employees have the right to take them to any discussion that might have an influence on their employment. Management has to inform them about the economic situation of the company at least 4 times per year and has to consult with them at least monthly if the works council insists.

In Austria they're elected every four years by percentage vote. There are separate councils for "white-collar" and "blue-collar" and airlines have yet another council for "crews" (cockpit and cabin together). (This is different in Germany.)

As for the well-being of the company, it's the same as any union. If you consider a sensible relationship with your workforce an asset, a works council will be helpful in establishing such a relationship. If you want to stomp the b****ers one by one, you won't like it.... ;)