Executive summary - Udo Bullmann

In its Communication on worker information and consultation [COM(95) 547 final - notpublished in Official Journal], the Commission took stock of Community action in the fieldof information, consultation and participation of employees. Some directives have alreadybeen adopted in this area (“collective redundancies “, “transfers of undertakings” and “European Works Councils “), while other proposals have not yet been finalised (“ Europeancompany “, “ European association “, “ European cooperative “, “ European mutual society“).Despite the existence of specific provisions on employee information and consultation, theCommission emphasised the need to redefine the Community legal framework in order toestablish more binding rules and presented a proposal for a Directive, the objective of whichwas to establish a general framework for employee information and consultation inundertakings located in the European Community.The Directive 2002/14/EC of the Council and the European Parliament of 11 March 2002establishing a general framework for informing and consulting employees mentions thatemployee information and consultation cover three areas in relation to undertakings:• economic, financial and strategic developments;• structure and foreseeable development of employment and related measures;• decisions likely to lead to substantial changes in work organisation or contractualrelations.Member States must establish the procedures for applying the principles set out in theDirective, with a view to ensuring the effective application of employee information andconsultation. They also have the option of limiting the information and consultationobligations of undertakings with fewer than 50 or 20 employees according to the MemberState’s discretion.The following are regarded as serious breaches of the obligations laid down in theDirective:• total absence of information and/or consultation of the employees’ representativesprior to a decision being taken or the public announcement of such decision;• withholding of important information or provision of inaccurate informationrendering ineffective the exercise of the right to information and consultation.In the event of a serious breach with direct and immediate consequences in terms ofsubstantial change or termination of employment contracts or relationships, the decisionstaken have no legal effect. This situation continues until such time as the employer hasfulfilled his information and consultation obligations. If this is no longer possible, theemployer must establish adequate redress in accordance with the arrangements andprocedures in place in the Member States.Since economic trends are bringing in their wake, at both national and Community level,changes in the structure of undertakings, there is a need to provide for the protection ofemployees in the event of a change of employer, and in particular to ensure that their rightsare safeguarded. To that end, the Council Directive 77/187/EEC on the approximation of thelaws of the Member States relating to the safeguarding of employees’ rights in the event oftransfers of undertakings, businesses or parts of businesses foresees that the rights andobligations arising from a contract of employment or from an employment relationshipexisting at the time of the transfer are transferred to the new employer. Member States are70