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A new directive for European Works Councils (EWC): opportunities and challenges for EWC employee representatives within industrial sectors

A seminar on “A new directive for European Works Councils (EWC): opportunities and challenges for EWC employee representatives within industrial sectors” took place in Brussels/Belgiuf on November 13-14,2024, was organized by BIE Int. (Bouw-Industrie & Energie International) in cooperation with EZA and funded by the European Union. It was focusing on opportunities and challenges for EWC employee representatives within industrial sectors. Representatives of workers’ organisations from Germany, France, Hungary, Bulgaria, Luxemburg and Belgium worked around the subject of the potential added value of a new EWC directive. Key topics included the state of the new EWC directive, recent reports from the European Parliament, and the need for better enforcement of rights for workers through better directives. Discussions highlighted priorities for a revised directive, including clearer rules for transnational matters and enhanced employee representation. The event featured various presentations and debates on the implications of the directive, the role of EWCs in restructuring, and the integration of social dialogue in the context of ongoing transformations like digitalization, the introduction of artificial intelligence and ecological transitions. 

For this seminar we could count on the valuable input and insights coming from expert-speakers from IndustriALL European Trade Union (FR – BE), ACV-CSC confederation (industrial relations department (BE), the Finish Trade Union TEK (FI), Eurofound (IT – RO) and trade unionist from different EU member states (DE, FR, LU, HR, BG, BE). 

Key Insights 

The revised EWC directive aims for improved enforcement of employee rights and better coordination across different local and transnational structures. There is an ongoing resistance from employers regarding the proposed changes in the EWC framework. The seminar emphasized the importance of adapting EWCs to handle transitions related to digitalization, ecological sustainability, and energy transitions. 

European Works Councils must proactively engage in restructuring processes and ensure timely communication and involvement in decision-making. The implementation of Artificial Intelligence (AI) could revolutionize how EWCs analyze data and monitor employee-related issues, enhancing their advisory capabilities. 

Frequently Asked Questions during the seminar

What are the main objectives of the new EWC directive? 

The new EWC directive aims to strengthen employee rights, enhance coordination between local councils, and ensure that all EWCs operate under a unified legal framework. 

How do EWCs contribute to managing corporate restructuring? 

EWCs play a crucial role in facilitating communication between management and employees during restructuring, ensuring that employee interests are represented and considered in decision-making processes. 

What challenges do EWCs face in the context of digital and ecological transitions? 

EWCs encounter challenges such as the need for reskilling employees, addressing declining union membership, and ensuring effective communication and collaboration among diverse cultural backgrounds. 

How can Artificial Intelligence assist EWCs in their functions? 

AI can help EWCs by analyzing large datasets, identifying potential risks to employees, improving communication through translation tools, and tracking trends in job satisfaction and productivity. 

AI for Employee Representatives (Philippe Duchamp, industriALL EU) 

  • AI Overview: Large language models (LLMs) like ChatGPT enhance natural language understanding and production. 

  • Impact: AI transforms industries, improving efficiency and decision-making while posing risks like job displacement. 

  • Employee Representatives' Role: Advocate for fair AI policies, monitor workforce impacts, and utilize AI for analyzing reports and labor laws. 

  • Benefits: Increased efficiency, improved accuracy, and better decision-making through AI tools. 

  • Conclusion: Responsible AI implementation is crucial for enhancing employee representation and protecting rights. 

Artificial Intelligence Recommendations for EWC Reps (Daniel Valtakari, TEK Finland) 

  • AI Package: Includes position papers, studies, workshops, and practical recommendations. 

  • Syndex Study: Highlights ambivalent impacts of AI on employment and productivity; AI can replace, assist, or augment workers. 

  • AI Act: Defines AI systems, differentiates risk levels, emphasizes ethics, and mandates training. 

  • Recommendations: Negotiate collective bargaining agreements, assess AI impacts, ensure transparency, and uphold GDPR compliance. 

  • Key Questions: Evaluate employment consequences, risk assessments, oversight, training, and data collection practices. 

Sara Riso and Dragos Adascalitei from Eurofound, discussed the implications of AI advancements on regulations, labor markets, and workplaces. The seminar highlighted the varying national debates surrounding AI ethics, with Eastern and Southern European countries focusing on digitalization and skills, while Western and Nordic nations have been engaged in ethical discussions since the mid2000s. The conversation included insights from Eurofound reports on ethical digitalization at work and the regulatory landscape surrounding AI and algorithmic management. Key findings indicated that AI’s impact on labor markets is nuanced, with limited job displacement but potential augmentation of roles. The seminar also addressed the role of social partners and EWC’s in establishing policies for AI use and the need for ethical considerations in technology implementation. 

Key Insights 

  • National debates on AI ethics vary by region, with older discussions in Western Europe compared to newer ones in Eastern and Southern countries. 

  • Existing regulations, such as GDPR and EU employment directives, provide a framework for addressing AI’s implications in the workplace. 

  • High-skilled workers and those in urban areas are more exposed to AI, although overall employment effects remain limited. 

  • AI adoption in Europe is relatively low, with significant cross-country differences and limited investment in training and reskilling. 

  • Ethical considerations and worker involvement in AI implementation are critical for its successful integration into workplaces. 

Frequently Asked Questions 

What are the main concerns regarding AI in the workplace? 

Concerns include ethical implications, job displacement fears, increased monitoring, and the necessity for reskilling. 

How is AI expected to affect job markets in Europe? 

AI is anticipated to have a limited negative impact on employment, with more roles being augmented rather than eliminated. 

What role do social partners and EWC’splay in AI regulation? 

Social partners are involved in shaping standards and policies for AI use, although their roles can be largely consultative. 

What obstacles hinder the adoption of AI in workplaces? 

Key obstacles include limited investment in employee training, a lack of worker involvement, and insufficient ethical considerations in technology design.