Tom Hayes, HR Policy Association Director of European Affairs and Managing Director of BEERG, testified before the Irish Parliament‘s Joint Committee on Enterprise, Trade and Employment regarding the need to amend Irish European Works Council (EWC) legislation to provide for proper dispute resolution procedures. Mr. Hayes emphasized that a more effective system will benefit multinational companies who are considering or have already chosen Ireland as a governing subsidiary jurisdiction for their EWCs.
European legislation states that EWCs are subject to the laws of the country in which their head office is based. Additionally, a company headquartered outside of the EU can nominate a representative agent in an EU country as the company’s head office. After Brexit, many multinational companies, mostly in the US and UK, have chosen Ireland as their base because they can no longer post a representative agent for their EWCs in the UK as outlined by the European Commission.
However, as Mr. Hayes stated to Parliament, “there were defects in the Irish legislation when it comes to resolving any disputes between EWCs and management that might arise.” Further, he urged lawmakers to review the Employees (Provision of Information and Consultation) Act of 2006, which provides a solid dispute resolution process. The Act refers disputes 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.
BEERG and HR Policy Global member company Oracle shared their experience of operating an EWC under Irish law and spoke of the practical problems and difficulties posed by the current deficiencies.
Outlook: Ireland has become increasingly significant in Europe as more employers consider moving their head office outside the UK. A proper dispute resolution process will benefit both management and workers. BEERG and HR Policy Global will continue to work on this important issue and update our members. Video and transcript of proceedings should be available on the Oireachtas committee webpage within one week.