The works council in discussion with the entrepreneur

The entrepreneur and the works council must meet each other at least twice a year to discuss company issues. How can the works council ensure effective consultation?

At least twice a year, a consultation meeting must take place, where the general operation of the enterprise will be discussed (Article 24 of the Works Councils Act, hereinafter: “WCA”). The entrepreneur, works council and – where appropriate – supervisory directors will attend the consultation meetings. How do you, as a works council, arrange an effective consultation meeting?

The importance of consultation meetings

A consultation meeting can take place upon request by the entrepreneur or the works council (Article 23 of the WCA). They are jointly responsible for holding a consultation meeting. The agenda contains the subjects communicated by the entrepreneur or the works council to the secretary of the meeting (usually the works council’s secretary).

Which subjects are discussed in a consultation meeting regarding the general operation?

• In any case, the entrepreneur must give notice of the decisions that require the works council’s advice and consent which he is preparing to take. Agreements are made about when and how the works council will be involved in the decision-making process. In this way, the works council is never surprised by an unexpected request.
• The collaboration and developments in the previous period will be reviewed. In this context, the entrepreneur has to provide information about, inter alia, the activities and results of the company. The entrepreneur also has to provide information about the employees working in the company on the basis of a temporary employment contract and the employment conditions of the company’s employees.
• In addition, the entrepreneur announces his expectations regarding the development of the workforce, the social policy he intends to pursue and the number of employees employed on the basis of a temporary employment contract in the coming year. In this way, the works council can act as a strategic discussion partner for the parties present.
• The company vision and strategy are also discussed in broad outlines. In this context, the entrepreneur has to provide, inter alia, financial information, such as the financial statements and the annual report.

The importance of these consultation meetings therefore consists in looking back on the previous period, discussing broad outlines and, as an entrepreneur and works council, jointly looking ahead.

Enable dialogue!

The lack of a concrete agenda or not providing the works council with information prior to the consultation, often leads to a monologue of the entrepreneur during the consultation meeting. There are a number of ways for the works council to prevent this and to initiate dialogue instead:

• Ensure that an agenda is decided on and request it in advance. Then, the works council can determine in advance which subjects have priority, which role the works council wants to take in this and when the involvement of the works council is desirable.
• Determine prior to the consultation meeting what the views of the members are on a particular development or a topical matter and discuss these during the consultation meeting. In this way, the entrepreneur will see whether there is support for the decisions he intends to take.
• Prepare own proposals and positions, ensure that these items will be included in the agenda and discuss them during the consultation meeting.
• Discuss topical matters during the consultation meeting and leave room for ideas from the works council, for example by scheduling questions in the agenda.

At the end of the consultation meeting, draw joint conclusions and make sound follow-up agreements about how the works council will be involved in the future. It is recommended that minutes be drawn up during the consultation meeting, so that it can be followed up later. In addition, a short report of the consultation meeting has to be drawn up for the company’s employees. This report of the consultation meeting requires the approval of the entrepreneur and the works council.

Conclusion

It is useful for all parties concerned to have an efficient and effective consultation meeting. Each discussion partner has his own role and responsibility. By starting the dialogue, broad support for the entrepreneur’s policy can be ensured, where all interests are taken into account. The works council can ensure in different ways that there is an effective consultation meeting. For example, the works council can contribute to the agenda, request this agenda in advance and prepare for the agenda items, prepare own proposals and raise ideas during the meeting.

For substantive discussions with the entrepreneur, also read our 7 tips for works councils to be taken seriously by entrepreneurs.

Works council lawyers

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