In 2005, the existence of a European Works Council was regulated in Romania by Law No. 217, which was published in the Official Gazette on 19 July 2005.
In May 2006, the monitoring report presented by the European Commission on Romania’s preparations for EU accession stipulated the need to amend certain aspects of the legal provisions on the operation of European Works Councils in Romania. The draft ordinance amending the existing law, proposed by the Romanian government, is expected to resolve any deficiencies mainly by redefining the terms ‘enterprise’ and ‘employee representatives’, extending the scope of legal provisions and making them compatible with the provisions of the new Labour Code, which is based on EU legislation.
Legislation in force
In 2005, the existence of a European Works Council was regulated in Romania by Law No. 217, which was published in the Official Gazette on 19 July 2005.
This law includes 51 articles and is due to enter into force upon Romania’s accession to the European Union (planned for 1 January 2007). It transposes Directive 94/45/EC on the establishment of a European Works Council or a procedure in Community-scale undertakings and groups of undertakings for the purposes of informing and consulting employees. Before the law is implemented, it will be subject to amendments and completion by government ordinance.
Law No. 53/2003 of the Labour Code stipulates the obligation to transpose European Community provisions on European Works Councils into the national legislation.
Moreover, Law No. 217/2005 requires the establishment of a European Works Council in undertakings with at least 1,000 employees within the EU Member States and at least 150 employees in each of at least two Member States in Community-scale undertakings or groups of undertakings.
The May 2006 Monitoring Report on Romania’s preparations for EU accession, prepared by the European Commission, states that ‘still the recent acquis on the statute of the European company as well as on information and consultation remains to be transposed’. The shortcomings that need to be addressed include: redefining the term ‘undertaking’, which is rather restricted in Romanian; extending the area of application of Romanian legislation to undertakings in Romania where the central management is situated in other countries; and including non-nationals in the definition of ‘employee representatives’ in undertakings with the central management located in Romania.
New provisions proposed
To eliminate discrepancies in the initial Law No. 217/2005, the government presented a draft ordinance, which was open for public consultation in order to ensure transparency in the decision-making process.
The new government ordinance amends four paragraphs of certain articles and removes one entire article of the law.
Paragraph amendments
The term ‘enterprise’ in paragraph 1 of article 4 was previously defined as: ‘any form of organisation of for-profit economic activities on a competitive market’. However, ‘enterprise’ is now defined as: ‘a public or private undertaking created to conduct a for-profit or non-profit business, located on Romanian territory or on the territory of another Member State in the European Union’.
In paragraph 3 of article 4, ‘employee representatives’ were defined as: ‘representatives of trade unions or, in the absence of trade unions, individuals elected and appointed to represent employees according to the legislation in force’. This definition has been amended to: ‘representatives of trade union organisations or individuals elected and appointed to represent employees, as provided for by national law and/or practice’.
Another amendment was made to paragraph 1 of article 5 on the scope of power and competence of European Works Councils. According to the previous definition, the law applied to: ‘a Community-scale undertaking or group of undertakings with the central management located in Romania’. Following the recent amendment, the law is now applicable to: ‘a public or private undertaking created to conduct a for-profit or non-profit business, located on Romanian territory or on the territory of another Member State in the European Union’.
In addition, paragraph 1 of article 42 was amended as follows: ‘Members of special negotiating bodies and employee representatives exercising their functions during negotiations on the agreement for implementing the information and consultation of employees shall enjoy the same protection and guarantees provided for employee representatives and duly elected trade union leaders by the national legislation in force’. Prior to the amendment, the paragraph referred only to employee representatives.
Article removed
Finally, article 6 of Law No. 217/2005 was abrogated, which had stated that: ‘the obligations arising from this law shall not apply to Community-scale undertakings or Community-scale groups of undertakings in which, on the date of enforcement of this law, there is already an agreement covering the entire workforce providing for the transnational information and consultation of employees’.
Commentary
Thus, the current legislation on the European Works Council has been brought into line with the acquis communautaire (EU body of legislation) and will be applicable from the date of Romania’s accession to the EU next year.
Constantin Ciutacu, Institute of National Economy, Romanian Academy
Eurofound recommends citing this publication in the following way.
Eurofound (2006), European Works Council legislation to be amended, article.
