European Companies without European Works Councils: Evidence from Portugal

Abstract: This article analyses the impact of the European Works Councils (EWCs) Directive in Portuguese multinationals. Though seven Portuguese companies are covered by the provisions of the Directive, only one EWC exists. Some of the main obstacles to the establishment of EWCs in Portugal are identified. The experience of the Banco Espírito Santo Group, where the only Portuguese EWC currently exists, is discussed.