France to revive worker consultation plan

Date: 22/06/2000

By John Shelley

FRANCE has vowed to revive controversial plans to give workers the legal right to a say in the running of their companies when it takes over the EU presidency next month.

Paris is determined to launch a fresh debate on the proposals drawn up by the European Commission for new rules to govern worker consultation which were abandoned before they were even tabled for ministerial discussion because of strong opposition from some member states.

The move reflects the determination of France to give social policy a high priority during its six-month stint at the Union's helm. However, diplomats warn that it will be extremely difficult for Paris to overcome opposition to the plans from the UK-led alliance which originally forced officials to shelve them. "If they want to timetable it for negotiations, they are perfectly free to do so but we expect that that is as far as it will get," said one diplomat.

French officials admit they are unlikely to get agreement on the proposals by the end of their presidency. "Considering the way things are now, it would be a pleasant surprise if we could come to the end of it before January," said one.

The plans unveiled by the Commission in November 1998 are designed to supplement existing EU legislation which already gives workers in multi-national firms with at least 2,000 employees in at least two member states the right to be consulted.

Under the proposals, companies would be required to give their workers information and consult them regularly on economic and strategic decisions.

The Commission also recommended introducing specific penalties for firms which fail to comply with the rules. Companies with less than 50 workers would be exempt from some provisions, although MEPs have suggested lowering this threshold to 20.

The UK is flatly opposed to the proposals, arguing that they breach the principal of subsidiarity because they would apply to businesses which only operate in one member state. It insists that there is no need for EU-wide legislation and this is a matter which should be dealt with at national level.

Commission insiders dismiss this argument and claim the UK wants to defeat the plans because of its reluctance to impose more worker rights on employers.

Berlin has so far supported London's stance. Insiders say this is because of a behind-the-scenes deal under which Germany has agreed to back the UK as long as it promises to approve plans for a European company statute which would enable businesses to set themselves up as pan-EU firms. The objections of these two big vote-wielding powers, along with opposition to the measure from Ireland and Denmark, has deterred officials from even putting the consultation proposals onto the Council of Ministers agenda until now.

France has vowed to revive controversial plans to give workers the legal right to a say in the running of their companies when it takes over the EU Presidency in July 2000.