Comparative labour law
Lecture 11
Industrial democracy
1. Historic background
● Traditionally workers were outsiders in the management of companies
● Insiders-influence via Workers cooperatives mostly failed (apart from some countries like IT)
● Outsiders-influence via trade unions was successful
● Employers sometimes tried to make workers insiders by way of “company councils” –this
also provoked hostility [US]
● After 1920 (Germany –Betriebsräte) slow acceptance of works councils in various countries
of Europe, not in all.
2. International standards
● Workers participation in the enterprise/industrial democracy has only very recently been
considered as a fundamental right.
o (not in ILO Conventions/ECHR etc.)
● In is now recognised in
o The Revised European Social Charter and
o In the EU Charter of Fundamental Rights.
3. Single, dual and triple systems of workers’ representation
● As a result of the historical development in Europe now 2 (even 3) sorts of systems of
workers’ representatives in the various European countries:
o The single channel systems, with only the trade unions as workers’ representatives:
UK, Nordic countries
o The dual channel systems, with the trade unions and the works councils as the two
kinds of workers’ representatives: NL, Belgium, Germany
o Sometimes even triple channel systems: France (+ délégués du personnel), Italy (+
consiglio di fabbrica). Change in 2020.
Two problems
A. In dual channel systems: the borderline between negotiation/information consultation. Also
negotiating functions for works’ councils?
B. How far can you go in information/consultation in company affairs? As far as influence of
workers in the boardroom?
What is the EU doing in this field?
A. A. Some Directives on merely information and consultation in national enterprises have been
issued:
● 3 EU Directives on information and consultation of workers’ representatives in matters of
collective dismissals, transfer of enterprises and health and safety (1975-1989).
● EU Directive 2002/14/EC requires all MS to set up procedures for information and
consultation of the workers in national undertakings of 50+/establishments of +20 workers.
These Directives give the bare minimum on information and consultation in national companies.
● UK, very negative, stuck to the bare minimum
● Many Member States (NL, BE, FR, DE, DK, SE, FI) are much exceeding the EU minima, either
by way of legislation or in all-industry agreements (DK).
Lecture 11
Industrial democracy
1. Historic background
● Traditionally workers were outsiders in the management of companies
● Insiders-influence via Workers cooperatives mostly failed (apart from some countries like IT)
● Outsiders-influence via trade unions was successful
● Employers sometimes tried to make workers insiders by way of “company councils” –this
also provoked hostility [US]
● After 1920 (Germany –Betriebsräte) slow acceptance of works councils in various countries
of Europe, not in all.
2. International standards
● Workers participation in the enterprise/industrial democracy has only very recently been
considered as a fundamental right.
o (not in ILO Conventions/ECHR etc.)
● In is now recognised in
o The Revised European Social Charter and
o In the EU Charter of Fundamental Rights.
3. Single, dual and triple systems of workers’ representation
● As a result of the historical development in Europe now 2 (even 3) sorts of systems of
workers’ representatives in the various European countries:
o The single channel systems, with only the trade unions as workers’ representatives:
UK, Nordic countries
o The dual channel systems, with the trade unions and the works councils as the two
kinds of workers’ representatives: NL, Belgium, Germany
o Sometimes even triple channel systems: France (+ délégués du personnel), Italy (+
consiglio di fabbrica). Change in 2020.
Two problems
A. In dual channel systems: the borderline between negotiation/information consultation. Also
negotiating functions for works’ councils?
B. How far can you go in information/consultation in company affairs? As far as influence of
workers in the boardroom?
What is the EU doing in this field?
A. A. Some Directives on merely information and consultation in national enterprises have been
issued:
● 3 EU Directives on information and consultation of workers’ representatives in matters of
collective dismissals, transfer of enterprises and health and safety (1975-1989).
● EU Directive 2002/14/EC requires all MS to set up procedures for information and
consultation of the workers in national undertakings of 50+/establishments of +20 workers.
These Directives give the bare minimum on information and consultation in national companies.
● UK, very negative, stuck to the bare minimum
● Many Member States (NL, BE, FR, DE, DK, SE, FI) are much exceeding the EU minima, either
by way of legislation or in all-industry agreements (DK).
