The expansion of companies and groups across multiple EU Member States, driven by the EU’s internal market, has led to an increasing “transnationalisation” of businesses. As companies extend their operations across borders, the procedures for informing and consulting employees in different Member States often fail to align with the transnational nature of decision-making. This disconnect can result in inconsistent treatment of employees affected by the same decisions within multinational companies and hinder effective workers’ representation and social dialogue at the European level.
To address this issue, the EU introduced Directive 94/45/EC in 1994, which required companies or groups operating in two or more Member States to establish European Works Councils (EWCs). These councils were created as a platform for dialogue on cross-border matters between employee representatives and management from various EU Member States and European Economic Area (EEA) countries.
In 2009, the directive was recast as Directive 2009/38/EC (the EWC Directive), aiming to resolve issues identified in the earlier legislation. This updated version sought to improve the creation of EWCs, address gaps, and clarify essential concepts. However, a 2016 evaluation of the directive revealed significant shortcomings, particularly regarding the consultation process and the ability of workers’ representatives to enforce their rights.
In response to these findings, the European Parliament urged the European Commission in February 2023 to revise the EWC Directive. A year later, on January 24, 2024, the Commission proposed a revision to strengthen the role of EWCs and enhance workers’ ability to participate in decision-making processes across borders. This revision highlights the growing importance of EWC elections as a key mechanism for workers’ representation within multinational companies.
Establishing an EWC and the Role of EWC Elections
The creation of an EWC is governed by Directive 2009/38/EC of the European Parliament and the Council, adopted on 6 May 2009. This directive applies to companies or groups with at least 1,000 employees within the EU and at least 150 employees in two or more Member States. The directive mandates the establishment of an EWC or a procedure for informing and consulting employees in such enterprises, and EWC elections play a crucial role in this process.
Composition and functioning of EWCs
An EWC consists of employee representatives from the various EU countries where the company operates. The number of representatives typically corresponds to the size of the workforce in each country. EWCs meet at least once a year with central management to discuss significant matters related to the company’s operations and any potential impacts on employees. In cases of exceptional circumstances such as relocations, closures, or mass layoffs, additional meetings may be called. EWC elections are essential to ensure that these meetings reflect the diverse perspectives of employees across Member States.
Are social elections the same as EWC Elections?
No, Social Elections and EWC Elections are not the same. While both involve electing employee representatives, they differ significantly in terms of scope, legal framework, and the issues they address.
- Social Elections are typically national or local elections held within a single country. These elections are governed by national labor laws and focus on electing employee representatives for local works councils, health and safety committees, and other country-specific bodies. They occur at regular intervals, often every 4 or 5 years, and are concerned primarily with national employment matters, such as working conditions, health, and safety.
- EWC Elections, on the other hand, are held for multinational companies operating across multiple EU Member States or EEA countries. Governed by EU Directive 2009/38/EC, these elections are focused on electing representatives to a European Works Council (EWC). The EWC addresses transnational issues that affect employees in more than one country, such as corporate restructuring, mergers, relocations, or other significant changes impacting the multinational company’s workforce.
In summary, while both types of elections serve to ensure employee representation, Social Elections are national and focus on local issues, whereas EWC Elections are transnational, addressing broader, cross-border issues within multinational companies.
Election procedures for EWC Elections
The procedures for electing employee representatives to the EWC are often determined by national practices or agreements within the company. Typically, representatives are elected by employees or their representatives from each Member State, with these procedures outlined in the internal regulations or agreements governing the EWC. These EWC elections ensure that all relevant stakeholders are represented and that employee interests are adequately voiced.
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Rights and Responsibilities of EWCs
EWCs are entitled to be informed and consulted on various matters affecting employees across multiple Member States. This includes receiving information on the company’s economic situation, development plans, investments, employment trends, and major organizational changes. Additionally, the EWC is responsible for ensuring that the information it receives is kept confidential and is used appropriately.
The Benefits of online voting for EWC Elections
Online voting offers significant advantages for EWC elections, improving both the efficiency and inclusivity of the electoral process. It allows employees, particularly those in remote or geographically dispersed locations, to participate more easily by offering a convenient and accessible platform to cast their votes. This is particularly important for ensuring that EWC elections are representative of the entire workforce, even across various Member States.
Moreover, online voting platforms enhance the transparency and security of the election process. Built-in authentication measures and encryption ensure that votes are cast anonymously and securely, reducing the risk of fraud or manipulation. Additionally, online voting systems speed up the counting and reporting of results, offering instant feedback and minimizing human error.
Online voting also streamlines the overall election process, cutting down on administrative costs and time related to organizing in-person elections, such as preparing ballots, setting up voting stations, and managing voter turnout. Furthermore, online voting can be integrated with digital communication tools like live-streamed meetings and webinars, facilitating seamless communication between employee representatives and management and improving the decision-making process within EWCs.
In the context of multinational companies operating across different EU Member States, online voting promotes a more inclusive, efficient, and secure electoral process for EWC elections. This is especially valuable where logistical barriers might otherwise limit employee participation in decision-making processes.
Online voting offers several advantages for conducting EWC elections, especially when it comes to improving efficiency, security, and participation. The table below outlines key benefits that demonstrate how digital voting can enhance the EWC election process, making it more accessible, cost-effective, and engaging for employees across multiple EU Member States.
| Benefit | Description |
| Increased accessibility | Employees can vote from anywhere, improving participation across multiple countries. |
| Cost efficiency | Reduces costs associated with in-person voting, such as travel and logistics. |
| Enhanced security | Secure voting systems protect against fraud and ensure anonymity. |
| Real-Time results | Instant vote counting and results reporting streamline the process. |
| Improved engagement | Easier participation increases employee involvement in decision-making. |
| Reduced administrative burden | Automates processes like ballot management and vote counting, saving time. |
| Environmental impact | Digital voting reduces paper use, contributing to sustainability efforts. |
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Recent developments in EWC Elections
On 24 January 2024, the European Commission presented a proposal to revise Directive 2009/38/EC on European Works Councils, with the aim of addressing weaknesses in the consultation process and strengthening the enforcement of workers’ rights. These revisions aim to make EWCs more effective, particularly in light of the green and digital transitions affecting the European labor market. The changes will likely have a significant impact on EWC elections by improving representation and participation across multinational companies.
In 2025, the revised EWC Directive was agreed by the European Parliament and the Council, and is now set to replace the current rules after national transposition. Member States are expected to transpose the new directive into national law by early 2028, with most of the new obligations applying to companies and existing EWCs towards the end of this decade. The updated framework is designed to reinforce information and consultation rights, clarify what counts as a transnational matter, and introduce more effective and dissuasive penalties for non-compliance. In this evolving legal context, well-structured elections supported by secure online voting become even more important to ensure compliant, transparent and inclusive employee representation across multiple countries.
For multinational companies operating within the EU, establishing an EWC and holding regular EWC elections is vital for ensuring open communication and consultation with employees on transnational issues. This process ensures that employees are well-informed and have an opportunity to contribute to decisions that affect their working conditions in various Member States.
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