SIPTU and Employer Group jointly urge government to take action on EWC reform

Post-Brexit, many multinationals are looking to set up their EWCs in Ireland.

Ireland should be benefitting from multinationals moving their European Work Council (EWC) legal base from the UK to Ireland post-Brexit, but deficient legislation is causing problems, an Oireachtas Committee has heard.

Representatives of Siptu and the Brussels European Employee Relations Group (Beerg) voiced their concerns about issues caused by inadequate Irish legislation to deal with EWC disputes.

“We are aware that there were defects in the Irish legislation when it comes to resolving any disputes between EWCs and management that might arise,” said Beerg executive director Tom Hayes.

European legislation states that EWCs are subject to the laws in the country in which their head office is based.

When a company is based in a non-EU/EEA country, such as the US, the head office can nominate a representative agent in the country of its choice and the representative agent acts as the company’s head office.

“It is our view that the absence of proper procedures to resolve disputes is in no one’s interest. 

Festering disputes are not helpful to dialogue between the parties.

“These deficiencies arise because regulations that should have been made back in the 1990s were never made,” said Mr Hayes.

After Brexit, it was no longer possible to legally base a representative agent in the UK as outlined by the European Commission. Leading to many choosing Ireland as their alternative base, which has further highlighted issues with the legislation relating to EWC disputes.

Mr Hayes said that the provisions on disputes in the Transnational Information and Consultation of Employees, Act 1996, were not fit for purpose. Mr Hayes added that his organisation identified the procedures in the later Employees (Provision of Information and Consultation) Act 2006 as an appropriate model "

"In essence, the Employees (Provision of Information and Consultation) Act 2006 provides that where a dispute arises, it is first referred to the Workplace Relations Commission for mediation and if mediation is not successful, the dispute is then referred to the labour court for a recommendation,” explained Mr Hayes.

One of the main issues for Siptu in relation to the current legislation for Workplace Relations Commisions in Ireland is the small fines they may receive if they are found to be in breach of the law of the land. Some of these fines are just €100, the trade union claimed.

“When you measure this against the fines imposed in other EU member states for breaches of the legislation it is not adequate, as fines imposed in the courts of other EU states range from €15,000 to €50,000.

“This makes Ireland an attractive proposition when companies wish to move their EWC legal base,” said Siptu spokesperson Denis Sheridan.