France puts works councils on agenda

Exclusive by John d'Arcy

Proposals for a new European Directive requiring all employers of 50 or more persons to establish consultative works councils may be put forward when France takes over the European Union presidency on 1 July, according to contractor sources in Brussels.

The Engineering Employers Federation believes the plans, which have been in abeyance, could be revived.

John Bromley, director of European Affairs at the Construction Confederation, commented: "Our understanding is that it is not a priority for the French. But the proposal has been put on the agenda of a working group. If there is general agreement, it may then be pushed forward.

"The idea is strongly opposed by the UK and by Germany who have a blocking minority vote. It would take some movement by Germany to make progress with the proposal. The feeling is that the French most likely view this as a possible bargaining tool to gain concessions in other aspects of social policy.

"Any extension of works councils would certainly have a very big impact on UK firms. It would forestall management decisions in a variety of areas. I have been warning British contractors that the proposal may have been in abeyance but it has not gone away."

Construction unions are claiming that some major industry companies have already been slow to set up works councils under the existing legislation relating toenterprises of 1,000 or more employees .

Bob Blackman, national secretary of the TGWU, commented: "A number of top companies have moved to set up works councils which dodge both the spirit and intention of the legislation. They are simply a sham."