TENDER SPECIFICATION

EFFAT Project

Anticipation of change and the sustainable management of structural changes: Promoting innovative actions to strengthen employee involvement and social partners’ cooperation.

Budget Heading VP/2016/003/0007

Information, consultation and participation of representatives of undertakings

Grant Agreement VS/2016/0295

1. Background

Since 1994, EFFAT has established European Works Councils (EWCs) in over 120 transnational companies, becoming one of the most experienced European trade union federations at setting up these essential employee representative bodies. EFFAT is also involved in the day-to-day activities of EWCs with the full engagement of its Company Policy department and its trade union coordinators’ network. This network is currently made upof80 EFFAT coordinators who follow the activities of around 120 EWCs on a daily basis.

EWCs nowadays are one of the major supranational entities for employees’ rights at company level, and the role they play is crucial for the labour and employment conditions of workers across Europe, and for the future of the European industrial relations system.

Therefore, the negotiations and renegotiations of quality EWC agreements, as well as the technical coordination and assistance of the day-to-day activities of these essential workers’ representative bodies are at the top of the EFFAT priorities.

According to EFFAT rules on EWCs, the EFFAT Secretariat engages with affiliates while carrying out the following tasks:

  • Coordinating the establishment of new EWCs and renegotiating existing EWC agreements.
  • Appointing officers from appropriate EFFAT Member Organisations as EFFAT EWC coordinators, in accordance with the EFFAT rules.
  • Taking an active advisory and coordination role in the negotiation and renegotiation of all EWC agreements in the EFFAT sectors.
  • Collecting and keeping copies of EFFAT EWC agreements.
  • Producing and providing expertise, advice and information on best practices in order to improve the functioning of EWCs from a trade union perspective.
  • Offering one-to-one support to EWC Coordinators on request.
  • Monitoring legal developments and legislative initiatives at EU level relating to EWCs and employee involvement at company level.
  • Providing relevant training, support and advice to the EFFAT EWC Coordinators network.
  • Liaising with other trade union partners – including the ETUC, IUF and other trade union federations – on EWC issues, policies and tools.

Especially in recent years, the economic crisis has heavily hit the EFFAT sectors and resulted in many job losses. This is exacerbated by sectoral issues such as the lack of a skilled workforce and the abuse of atypical forms of employment. In this critical scenario, EWCs established and supported by EFFAT have consistently proven to be an essential tool in mitigating the impacts on employment of structural changes and restructurings.

European Works Council established in the EFFAT sectors are indeed based on a spirit of openness, mutual trust and respect, and it is in this constructive spirit that they endeavour to operate. The activities of the EWCs established and supported by EFFAT contribute to enhancing the involvement of employees in the decision-making process, while at the same time supporting business in tackling economic, social and environmental challenges.

In order to reach thesegoals, over the years the EFFAT Secretariat has developed policies and working tools that support the work of our coordinators network in order to make the best possible use of the 2009/38/EC directive and the whole EU social acquis.

Just to mention a few, the EFFAT Secretariat has developed working tools on how to tackle important social challenges in European Works Councils such as, among others, precarious work, health and safety issues (and in particular stress inthe workplace), youth involvement and gender equality. Some of these working tools have also been developed thanks to the financial support of the European Commission; this is the case, for example,forthe study carried out on work related stress financed with the project Fostering the role of the EFFAT EWCs: Taking an active role in managing stress and psychosocial risks,Ref. VS/2014/0355.

This crucial work needs to be strengthened in order to promote actions aiming to familiarise the social partners and actors at company level with the content of the EU law, enhancing their cooperation and enabling them to exercise their rights and obligations.

To do so in the best possible manner, we need to develop new and innovative policy guidelines and working tools for our coordinator network and our affiliates operating in transnational companies. These actions must in particular address transnational issues that affect the companies operating in the EFFAT sectors through the development of innovative solutions. In this regard, one of the main challenges in the upcoming years is the implementation of effective measures that deal with the anticipation of change and the prevention of disputes in the context of restructurings and structural changes at company level.

In order to achieve this important target,an innovative and pragmaticapproach will be implemented during the project and will focuson the following main objectives:

  • The development of a cross-border collective bargaining cooperation in the EWCs and transnational companies (TNCs) operating in the EFFAT sectors.
  • The promotion of innovative solutions to deal with the anticipation of change and the management of structural changes in a sustainable way.
  • Among these innovative solutions, the project will particularly insist on familiarising EFFAT affiliates and social partners with transnational company agreements (TCAs).EFFAT is indeed strongly involved in the current debate at EU level among the ETUC, Business Europe and the European Commission on the future of TCAs. EFFAT strongly believes in the great potential of these agreements and in the important role they will play in the future in countering social dumping and promoting the establishment of a floor of minimum social rights across Europe.

2. Objectives

Taking into account the above-mentioned considerations, the main objectives of this project are:

1)Facilitatecross-border collective bargaining cooperation in EWCs and TNCs operating in the EFFAT sectors as a preliminary action to design innovative solutions that address the consequences of structural changes

EWCs provide a platform where workers’ representatives can meet and strengthen cross-border cooperation and coordination. EWCs can also provide a useful platform to develop cross-border collective bargaining cooperation. The development of collective bargaining cooperation during EWC sessions promotes the exchange of information about how working and employment conditions are establishedin the various countries where a company operates. Although industrial relations systems across Europe differ greatly, when this exercise is carried out jointly with the full involvement of Management and EWC members, it becomesveryuseful and fosters mutual understanding, trust and cooperation among EWC members as well as with Management. Moreover, everybody can learn from each other’s experiences thanks to the exchange of information and good practices. The activity can also help social partners toset common goals and a floor of minimum rights across the company’s establishments operating in Europe. This activity can eventually set the basis for the conclusion of transnational company agreements (whose development are mentioned as one of the objectives of the call for proposals).

2)Promote innovative solutions to deal with the anticipation of change and the management of structural changes and restructurings in a sustainable way

Social dialogue, negotiation and employee involvement are the fundamental values and tools that underpin and reconcile the promotion of social cohesion, quality employment and job creation as well as increased innovation and competitiveness in European economies. In EFFAT’s view, it is crucial for social partners to develop innovative solutions to deal with the anticipation of change and to take up future global and sectorial challenges such as the need of skills and qualifications.In order to accomplish this ambitious target, the development of employee involvement in undertakings is crucial. Only a stronger cooperation among social partners and actors at company level will allow for positive information and consultation practices and the joint adoptionof virtuous practices such as: a strategic long-term monitoring of the company’s economic and financial situation and of technological and market developments; a continuous mapping of jobs and skills needs; designing individual training plans; comprehensive career counselling for professional categories; mentoring andassistance to facilitate professional transitions. These are just a few examples of the actions that, if taken at company level, can facilitate the anticipation of change and the management of consequences of structural changes.

Therefore, this project will focus on the development of policy recommendations and a working tool addressed to the EFFAT EWC Coordinators network and the EFFAT affiliates who deal with transnational companies and to the Central Managements of TNCs operating in the EFFAT sectors.

In practice, this goal will be achieved through the following main steps and actions:

  • The development of a cross-border collective bargaining cooperation in EWCs and TNCs operating in the EFFAT sector.
  • The creation of a working tool for EWC members, coordinators and EFFAT affiliates to deal with the anticipation of change and management of structural changes in a responsible manner and with innovative solutions that can facilitate cooperation with Management.
  • The drafting of a template TCA agreement on anticipation of change and responsible management of structural changes and restructurings. The document will be presentedto social partners operating in the EFFAT sectors as a base fordiscussion, to develop a common approach on the above-mentioned issues.
  • The development of policy recommendations.

3)Promote actions designed to prepare the setting up of transnational information, consultation and participation bodies

As mentioned in the introduction to the project, Coca-Cola European Partners is one of the target companies. The project will promote the coordination of this workers’ representative structure whose establishment is crucial for the development of fair industrial relations in the European Coca-Cola system. Thanks to the project, workers’ representatives from the various countries involved in the new perimeter of the mega bottler will have the chance to meet thanks to EFFAT’scoordination and agree on a common approach towards the establishmentof the new CCEP EWC. This exercise will also facilitate the discussion and future negotiation of the EWC agreement with the Senior Management of CCEP.

4)Foster workers’ involvement and promote initiatives to strengthen transnational cooperation between workers’ and employers’ representatives

This objective is the driving force of the entire project, and will be achieved with the development of the McDonald’s case study in particular. As mentioned before, industrial relations and social dialogue with McDonald’s management is going well in some EU countries, whereas in others there are some difficulties, partly due to the particular business model and franchise system of the company. The exchange of good practices among workers’ representative bodiesin different countries and the introduction of a collective bargaining cooperation among them will bring favourable conditions andimprove industrial relations and social dialogue in countries where such aspects have not yet been fully developed.

The project conforms to the objectives of Budget Heading 04.03.01.06 - VP/2016/003, and particularly meets the following priorities expressed in the call for proposals:

  • To promote actions designed to prepare the setting up of transnational information, consultation and participation bodies and mechanisms arising from the application of EU law on employee involvement.

The establishment of the CCEP EWC is indeed one of the aims of the project.

  • To promote the exchange of information and good practices, aimed at creating favourable conditions for the setting up of transnational information, consultation and participation bodies and mechanisms arising from the application of EU law on employee involvement.
  • To promote actionsthat aim to familiarize the social partners and actors at company level with the content of EU law and transnational company agreements, and to enable them to exercise their rights and their duties in this regard.
  • To promote initiatives to strengthen transnational cooperation between workers' and employers' representatives regarding information, consultation, and participation of employees within companies operating in more than one Member State.
  • To promote actionsthat familiarise the actors represented at company level with transnational company agreements and to strengthen their cooperation in the European Union.
  • To promote innovative actions relating to employee involvement, with aview tosupporting the anticipation of change and the prevention and resolution of disputes in the context of corporate restructuring, mergers, take-overs and relocation in EU-scale undertakings and groups of undertakings.
  • To strengthen the cooperation between the social partners for the development of employee involvement in designing solutions that address the consequences of the economic crisis, such as collective redundancies.

3. Actions

There will be four main actions undertaken under the project:

1)Facilitating cross-border collective bargaining cooperation in EWCs and TNCs operating in the EFFAT sectors as a preliminary action to design innovative solutions that address the consequences of structural changes

Collective bargaining cooperation is an active and useful exercise to be carried out in EFFAT EWCs for the reasons we mentioned above. This kind of cooperation should particularly target the following provisions negotiated at national level in collective bargaining:

  • Working time
  • Anticipation of change: which good practices currently exist at national level?
  • Management of structural changes and restructuring processes – What are the practices at national level?
  • Work/life balance
  • Vocational training
  • Health and safety provisions
  • Wages (structure of the wages and bonus systems)
  • Pension schemes

In order to develop this exercise effectively, a clear method needs to be adopted. The use of collective bargaining questionnaires to be filled in by EWC members and EFFAT affiliates, and interviews with EWC members can be considered as possible tools to be developed by the appointed Experts.

The collective bargaining cooperation exercise will be promoted and launched at the beginning in the two case studies (CCEP and McDonald’s) and then it will also apply in other EWCs and TNCs operating in the EFFAT sectors thanks to the support of our EFFAT EWC coordinators network. As the two case studies operate in two different sectors and with different business models, two different external Experts will be engaged to develop the aims of the project.

2)Creating a working tool for EWC members, coordinators and EFFAT affiliates to deal with the anticipation of change and responsible management of structural changes and restructurings

While the collective bargaining cooperation exercise is carried out in the EFFAT EWCs and in the two targeted companies, the second part of the project will focus on the development of a working tool to deal with the anticipation of change in European Works Councils and TNCs.

The promotion of the collective bargaining cooperation exercise will allow the EFFAT EWC Coordinators and the designated Experts to carry out a wide and in-depth assessment of the good and bad practices in the companies that operate in the EFFAT sectors.

Moreover, as one of the subjects targeted by the collective bargaining cooperation is anticipation of change and management of structural changes and restructuring processes, the Coordinators and the Experts will also be able to take stock of the good examplesin place with respect to this subject. Thanks to these actions, the appointedExperts, in cooperation with the EFFAT Secretariat and supported by the EFFAT EWC Coordinators network, will create a practical working tool to deal with the anticipation of change and responsible management of structural changes and restructurings. This working tool will include the following:

  • An introduction on the goals of the project.
  • An explanation of the variousmethodology used for Coca-Cola European Partners and for McDonald’s, and an analysis of the informationcollected.
  • The assessment of the current EU legal framework establishing conditions for informing and consulting the workforce in case of restructuring processes and other structural changes or events, such as collective redundancies, transfer of undertakings or insolvencies (information and consultation directives, etc.).
  • The analysis of the European Commission “Quality Framework for anticipation of Change and Restructuring (QFR)” and the promotion of this tool.
  • Taking stock of other examples of good practices in anticipation of change in TNCs operating in the EFFAT sectors.
  • Practical guidelines for EWC members, trade union officers, senior shop stewards but also company Management to deal with the anticipation of change and the management of structural changes in EWCs and in transnational companies.

3)Drafting a TCA template agreement on anticipation of change and responsible management of structural changes and restructurings

One of the outcomes of the project will also be the drafting of a TCA on anticipation of change and responsible management of structural changes and restructurings. Thisdocument will be a promotional tool made available as an outcome of the project for all EFFAT EWC Coordinators and affiliates operating in TNCs. The document will also be made available for EFFAT social partners and will be promoted as a base of discussion for future agreements among EFFAT and Central Management of TNCs.

The purposes of this document are:

  • Familiarising EFFAT affiliates and EWC coordinators with the rationale and potentials of Transnational Company Agreements.
  • Developing a common understanding on the process and steps to be taken to sign these agreements.
  • Providing a tool to promote the establishment of a fair and trustful relationship among Central Management, employees and their representatives in all the countries where a company operates.
  • Building a robust mechanism for addressing organisational change in TNCs by attempting to reduce any negative social implications and better prepare employees and Management for the change.
  • Setting out a set of standards and a list of good practices that can help address structural changes and restructuring process undertaken by each TNCs in Europe, recognising that responsibility to manage restructuring should be carried out according to national legislations and collective agreements.

4)Conferences and workshops