Good News for European Works Councils!

European Parliament backs stronger workers’ voice in multinational companies

Today the European Parliament has confirmed its support for the long-awaited revision of the European Works Council (EWC) Directive. This decisive vote marks an important milestone in strengthening the role of EWCs and ensuring that employees’ voices are properly heard within multinational companies operating across Europe.

Following the vote, the European Trade Union Confederation (ETUC) has urged EU Member States to swiftly confirm their approval so that the revision can be formally adopted. Once adopted, Member States will have three years to transpose the new rules into national law, meaning they could start to apply from 2028.

A long-overdue update

This revision modernises the current EWC framework and brings long-awaited improvements. It aims to make EWCs easier to establish, better funded, and more effective in influencing company decisions on cross-border matters such as mergers, restructurings, and outsourcing. It ensures more meaningful consultation, timely access to information, and stronger rights for workers’ representatives-contributing to fairer, more transparent decision-making processes across multinational groups.

Key improvements at a glance

1. Two in-person meetings per year

EWCs will now have the right to two face-to-face plenary meetings annually, unless both sides agree otherwise. This is an important step forward in recognising the value of direct dialogue. In-person meetings strengthen trust, improve understanding of complex company strategies, and create the space for real and constructive exchange.

2. Earlier and more meaningful consultation

The revised Directive broadens the definition of ’transnational’ matters, ensuring that more topics fall within the EWC’s remit-including developments in one country that are likely to affect employees in another. Equally important: management must now provide a written response to the EWC’s opinion before taking a final decision. This reinforces the principle that consultation must happen early enough to genuinely influence outcomes.

3. Clearer funding and resources

The Directive now explicitly requires central management to cover all reasonable costs necessary for the EWC to function effectively. This includes training for EWC and Special Negotiating Body (SNB) members, expert and legal assistance (when notified in advance), and travel and meeting costs. This clarity should help avoid unnecessary debates about expenses and allow EWCs to focus on strengthening their expertise and influence.

4. End of outdated agreements

All legacy or exempt EWC agreements – those signed before the first Directive entered into force – will lose their exemption status. Companies will have to negotiate new, compliant agreements that meet the updated standards. This offers many EWCs an opportunity to modernise their arrangements and align them with current best practices.

5. Gender balance and stronger protection

The Directive promotes greater gender balance, encouraging EWCs to aim for at least 40% representation of each gender. It also enhances protection for EWC members and safeguards their right to communicate freely with employees they represent.

6. Enforcement and sanctions

Member States must now establish effective and dissuasive sanctions for breaches of information and consultation rights. Although the Parliament did not include a right for EWCs to block company decisions, these stronger enforcement provisions might make it easier to hold companies accountable.

7. Shorter timelines for negotiation

The period to negotiate a new EWC agreement before the ‘subsidiary requirements’ automatically apply will be reduced from three years to two. If no agreement is reached within two years, the default provisions – such as the right to two annual meetings and the funding obligations – will take effect automatically.

Next steps

Each country will have three years to implement the new provisions into national law. During this period, EWCs and management are encouraged to review their current agreements and identify areas that need adjustment, discuss the implications of the revised Directive, and prepare for expanded rights on consultation, training, and funding.

In summary

Today’s vote represents a significant victory for employee participation in Europe. The revised Directive offers stronger rights, clearer rules, and fairer conditions for both EWC members and management.

For EWCs, it means: more opportunities for in-person dialogue, earlier and more meaningful consultation, secured resources and funding, and improved gender balance and legal protection. This should give employees in multinational companies a stronger and more effective voice.