A small but growing number of multinational companies have set up worldwide employee information and consultation bodies. Norway-based risk-management group, DNV, has recently joined the list.

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European Employment Review
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  THE EDITOR'S MESSAGE Issue 429  
  EMPLOYEE CONSULTATION GOES GLOBAL
NEIL RANKIN

A small but growing number of multinational companies have set up worldwide employee information and consultation bodies. Norway-based risk-management group, DNV, has recently joined the list.

Multinationals operating in Europe are familiar with transnational information and consultation through European Works Councils (EWCs). However, in companies whose operations are spread around the world, and are highly integrated globally, a solely European level of information and consultation may not be fully effective, as the issues discussed have a wider geographical scope. Some such multinationals have taken the step of creating a form of “world works council”, although - unlike EWCs - there is no statutory obligation to do so.

World works councils, usually based on agreements with employee representatives, take a variety of forms and have differing origins, mainly arising:

  • as an additional layer of information and consultation, on top of a Europe-specific EWC (and sometimes similar bodies in other regions), as at DNV;
  • through the expansion of an existing EWC, as at Renault, or the creation instead of a “pure” EWC of a wider global body incorporating the functions of an EWC, as at Rolls-Royce; or
  • through the operation of an international framework agreement on workers’ rights and corporate social responsibility, as at EDF.

Although such structures remain quite rare at present, deepening economic globalisation may make the idea of a world works council relevant to increasing numbers of multinationals.

XpertHR Mark Carley,
Editor,
European Employment Review

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France: Older worker penalties will take effect from January 2010

The French Government reminded employers in September 2009 that from January 2010 they will face a penalty of 1% of their paybill if they are not covered by a collective agreement on promoting the employment of older workers.

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  FEATURES

International: DNV sets up global employee forum

DNV, a risk-management services multinational based in Norway, has set up a global employee information and consultation forum. We look at the DNV case and at other companies that have established "world works councils".

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