Can you afford to cut costs on EWCs?

This month, it’s been exactly 30 years since the European Union’s First EWC Directive officially came into force. On September 22, 1996, European Works Councils became a new platform for management and employee representatives from across European countries to discuss major business decisions affecting workers in multiple nations. EWCs are mandatory for large multinational companies with at least 1,000 employees in total across EU/EEA member states.

Since then, EWCs have proven to be a valuable and powerful instrument for both companies and employees, helping to ensure effective transitions and changes with minimal disruption.

Cutting the EWC budget
However, recently there seems to be a growing tendency to look at EWCs as a potential area to save costs. We see more and more questions like: ‘Can’t meetings be held online instead of face-to-face? Does management really need to attend in person? Can meetings be shorter?’
And sometimes: ‘Does a particular business change really need to involve the EWC at all?’

It’s clear that many companies need to control their costs. And EWCs should use their budgets responsibly too. But sometimes I do wonder whether we are losing sight of the bigger picture.

A good EWC process is not just a cost. On the contrary, employee representatives bring extensive knowledge to the table, from the shop floor and from very different local realities across Europe. They often see and address issues that are less visible from a central management perspective. They are thus able to point out where a proposed change might run into problems in practice — and in doing so, potentially save the company money.

That is why EWC involvement is so important before changes become reality. Timely and in-depth consultation creates space to test assumptions and discuss whether a proposal will actually work as intended. This can prevent problems later and lead to better implementation for both the company and its employees.

Unfortunately, EWCs are sometimes perceived as ‘negative’ or treated as a hindrance. But questioning management proposals is a crucial part of their role. They represent colleagues across Europe and should be able to raise concerns where they see them. That does not have to lead to confrontation.The real problem starts when engagement is reduced too far, or when decisions are pushed through too quickly.

It’s not about the costs
If employee representatives feel they do not have sufficient information, trust can disappear quite quickly. The discussions then become more formal and unpleasant. Sometimes even legal advice is sought and, in the worst case, legal proceedings follow. What then started as an attempt to minimise EWC costs and reduce its role can become a much more expensive and frustrating process for everyone involved.

It’s really not a question of: ‘How much does the EWC process cost?’ But rather: ‘How can we get the EWC process right, so that it is efficient and effective and helps us to save costs down the line?’

European employee representation works best when it is based on constructive dialogue, not on a fight over rights and procedures. And in my experience, working with employees and their representatives usually creates far more value and is ultimately much cheaper than trying to work around them and dealing with the consequences afterwards.

Cost-cutting on EWCs is simply too expensive!