EWC's

Question 1

EWC

Answer 1

• Are company level statutory information and consultation forum
• Required to be formed in companies with::
  “Member states are to provide the right to establish EWC in companies or group of companies with at least 1000 employees”

Question 2

What are the three types of EWC

Answer 2

1. Polycentric approach
2. Ethnocentric approach
3. Regiocentric approach

Question 3

EWC Polycentric approach (2)

Answer 3

1. EWC is national meeting point of different representatives
2. Symbolic existence tied to annual meeting

Question 4

EWC Ethnocentric approach (3)

Answer 4

1. Representatives from home country dominates its functions
2. Active rather than symbolic
3. Communication between employee representatives and ongoing contact with group management

Question 5

EWC Regiocentric approach

Answer 5

Tries to regulate matters at a European level rather than national level

Question 6

How EWCs operate? (3)

Answer 6

1. Convene - Typically EWCs meet once or twice a year
2. Day 1 & 2 - Workers discuss their priorities and needs
3. Day 3 - on the final day, the EWC meets with management to discuss outcomes

Question 7

Who Profits from EWCs?

Answer 7

Management profits but, labor is better off

Question 8

Management benefits (2) and detriments (1) of EWC

Answer 8

Benefits:

1. Coordination of production across national lines
2. Common understanding in HR restructuring

Detriments: Less power and discretion in decision making

Question 9

Labor benefits (1) and detriments (2) of EWC

Answer 9

Benefit: Representation and coordinated action in decision-making processes

Detriments - Not a formal labor contract
- Voice can be dismissed

Question 10

Why are there more EWCs in US MNC as opposed to German MNC? German perspective (3)

Answer 10

1. Perception among German workers of a lack of added value from EWCs
2. Already have the right to codetermination under German law
3. Rights extend beyond the reach of traditional EWCs, which only involves meetings between representatives as well as consultation and information services

Question 11

Why are there more EWCs in US MNC as opposed to German MNC? American perspective

Answer 11

1. Easier to unite America subsidiaries in Europe, no link to European home country
2. Coherent development of policy (fewer different sets of legislation learned)
3. Home country legislation concerns