Collective redundancies | Transnational Restructuring Navigator

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What you should know about it:

Collective redundancies or dismissals are situations in which a large number of workers of a company lose their jobs within a short period
In a collective redundancy situation, employers must consult with national representatives of the affected workers. This obligation is defined in EU Directive 98/59/EC. It sets out rules on the information and consultation of workers’ representatives before collective redundancies are made, as well as provisions on practical support for the workers who are laid off.
According to the EWC Directive, collective redundancies are an exceptional circumstance, giving rise to a consultation procedure with the EWC.
Dismissals and collective redundancies as a result of ownership or a business change or closure / bankruptcy are covered by other EU rules.
If collective dismissals are unavoidable, national legislation obliges the employer to negotiate with the workers representation body about measures of support for affected workers such as social plans, financial compensation, retraining and/or support for finding a new employment.
EWCs and SE Works Councils as well as worker board level representatives should be well aware about the national rules as regards collective redundancies in order to oversee the respect for the appropriate procedures and a correct implementation in each of the Member State that is affected.

Your mission is to …

Anticipate the possible collective dismissals in your company and reasons of the management to consider collective redundancies.
Use trade union resources and information on the issue at European and national level.
Gather all information that helps to understand the economic case of collective redundancies but also possible “hidden” motivations of the management.
Get in touch with your EWC/SE WC coordinator and your European Trade Union Federation for advice.
Share all information you can collect at local level with all EWC/SE WC members.
Ensure the EWC speaks with one unanimous voice and express an opinion on the restructuring plan before the start of national negotiations of workers and trade unions with the local management.
Be pro-active: Claim your rights, do not wait for management to voluntarily come forward with the necessary information or ask for your opinion.
For more generic recommendations on transnational restructuring please click HERE

Timeline matrix

European Works Councils SE Works Councils

In case of rumours and a transnational dimension (the measure resulting in collective redundancies is decided at transnational level or/and affecting several sites/subsidiaries in different EWC countries) central Management has the obligation to inform the EWC or SE WC as soon as possible (see intended decision)

Local worker representations

The management at local level has to inform about any planned collective redundancies.
Exact deadlines and obligations are described in the respective national labour law provisions on collective dismissals.

Worker representatives on the Board

Management should inform the Board level worker representatives about the corporate strategy and any plans that are likely to affect the workforce.

European Works Councils SE Works Councils

Members have the opportunity to raise questions with management, for instance via their Select Committee, Secretary, Chair or other spokesperson in-between meetings.
The EWC should exchange and gather information as early as possible in close cooperation with local and national members in the affected countries.

Local worker representations

Local worker representatives have the possibility to raise questions to national or local management to verify the rumours veracity.
They should also get in touch with national level trade unions as well as the EWC.

Worker representatives on the Board

Raise the issue in board meetings and discussions about future strategy and the economic reason of redundancies with management. Send signals to the EWC.

European Works Councils SE Works Councils

In case of large scale redundancies trade unions should develop own initiatives targeting not only the employer but also affected public authorities and governments at local, regional and national level.
There should be a close cooperation between union structures at EU and national level and the EWC / SE WC

Local worker representations

Rumours may be well-founded or not: initial exchanges with workers concerned maybe needed. Worker representatives may also check public information from the internet (press, corporate website, …). Trade unionists can also exchange information across establishments depending on the national legislations.

Worker representatives on the Board

Regular exchange with worker board level members as well as national trade union members involved in the EWC.

European Works Councils SE Works Councils

No direct role vis-à-vis the EWC but the EWC should know that in case of collective redundancies, public authorities in those countries that are affected must be notified in advance by the employer.
The EWC therefore should be aware of the national legal regulation and the different procedural rules in the EWC countries affected by collective redundancies.

Local worker representations

Local workers representatives should inform themselves about legal rules and the role of public authorities in situations of collective redundancies implementing the provisions of the EU Directive.

Worker representatives on the Board

No role of public authorities in relation to Board level worker representatives.