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The SE consultation

The SE consultation. Jan Cremers March 201 2 j.cremers@uva.nl. EU after Enlargement. Relevant European Directives. EWC Directive 1994/45/EC + 2009/38/EC Directive national information and consultation 2002/14/EC Directive on workers‘ involvement in SE&SCE SE: 2001/86/EC

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The SE consultation

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  1. The SE consultation Jan Cremers March 2012 j.cremers@uva.nl

  2. EU after Enlargement

  3. Relevant European Directives EWC Directive 1994/45/EC + 2009/38/EC Directive national information and consultation 2002/14/EC Directive on workers‘ involvement in SE&SCE SE: 2001/86/EC SCE: 2003/72/EC Information and consultation in EU active transnationals. Oper: 09/1996 + 12/1999 (UK) Oper: 06/2011 (4 MS not yet) National minimum standards Information and consultation. Oper: 03/2005 Mandatory negotiations on workers‘involvement: Information, consultation, & participation. Oper: 10/2004 (SE) & 08/2006 (SCE)

  4. Information and consultation

  5. Participation in the board

  6. Background • SE (Societas Europaea) legislation consists of two intertwined legal acts: Regulation 2157/2001 and Directive 2001/86 • Rules are based on a balanced compromise reached after more than 30 years of intensive debates in the EU and the Member States • Purpose was to establish a single legal corporate model throughout Europe

  7. Characteristics • The Directive contains provisions for a legally binding procedure of company-level negotiations on transnational information and consultation bodies (SE Works Council) and on participation at board level. • Workers’ involvement is in accordance with the so-called ‘before-and-after principle’.

  8. Short history • SE rules entered into force in October 2004. • At this moment >1113 SEs registered. • Only 210 of these SEs can be classified as ‘normal’, in the sense that they are both operational and have employees. • The total of Czech SE companies makes up 60% of the total number of SEs in Europe. There it has become an alternative for the normal national company form.

  9. SE balance sheet early 2012 1 March 2012, - in total 1113 registered SEs in ETUI’s European Company Database (ECDB). Increase is mainly due to SE registration in the Czech Republic (in total 676) – in the meantime 60% of all registered SEs. The overall distribution in March 2012: Normal – 210, Micro – 103, Shelf – 137, Empty – 104, UFO – 559 (454 in Czech Republic). http://ecdb.worker-participation.eu

  10. SE and EWC

  11. The 2008 Consultation • Social partners agreed: too early to start revision, given the lack of experience of applying the national provisions transposing the Directive. • BusinessEurope: involvement overly complicated; structured provisions around employee participation and the creation of Special Negotiating Body substantial obstacles to increasing the number of SEs; greater flexibility needed. • ETUC: size of the body has to be discussed; rights exercised; protection

  12. Assessment by the EU • 2008: too early, procedure is complex, but compromise took 30 years of negotiations • 2011: three problematic areas identified, i.e. • a)complexity of the procedure for employee involvement; • b) lack of legal certainty concerning certain aspects of the negotiation procedure; • c) concern that the use of the SE form could have an effect on the rights to employee involvement granted by national or EU law.

  13. Main questions Commission • Opinion on the provided analysis – any additional items • Revision needed (in parallel with the revision of the Regulation) – scope? • Other action, what form? • A dialogue under Article 155 TFEU? Deadline 30 September 2011

  14. BusinessEurope + The smaller size of the supervisory board + Image & Promotion of efficient structures - Interference of SE workers involvement; distortion national labour frameworks - Negotiation procedure cumbersome • Priority is simplification of the Regulation • Calls for removal of obstacles, in particular from a company law and taxation perspective

  15. Workers’ involvement a ‘burden’ – a SEEurope report • No hard evidence of serious hindrance • No high incidence in countries where WP is absent • Lack of proper information • Other incentives/disincentives determine Employers fear possible increase in level and scope of employee involvement See for more: http://www.worker-participation.eu/About-WP/What-s-new/News-Bulletin/News-Bulletin-worker-participation.eu3

  16. More information ◗ Website ETUC: http://www.etuc.org ◗ General information on EBR, SE and workers‘involvement: http://www.worker-participation.eu ◗ EWC-Database of ETUI: http://www.ewcdb.org ◗ Database of the Social Development Agency (SDA): http://www.sda-asbl.org ◗ Information on the revised EWC see: „European Works Councils: a trade union guide to Directive 2009/38/EC“, available at www.etui.org

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