Social dialogue is part of the European social model, which is recognized as a set of values and objectives shared by the Member States, and is the subject of policies and regulations. Importantly, the European Union (EU) aims to promote the role of the social partners at both national and European level.
The European social model recognizes the special role European social partners play in the functioning of the EU and its institutions. Employers’ and workers’ organizations in the 27 EU Member States have organized themselves into bodies and federations, where they engage in bipartite social dialogue – or tripartite social dialogue with European political institutions – to shape transnational policies and address issues at the EU level, through cross-border social dialogue.
The EU has also encouraged the establishment of cross-border employee representation bodies bringing together representatives from different countries at company level – another type of cross-border social dialogue developing.
Involvement of employer and worker organizations in the policymaking process
The Treaty on the Functioning of the European Union makes specific mention of the so-called “Tripartite Social Summit” – a forum for dialogue between the EU institutions (the Council of the EU, which represents Member State governments, and the European Commission, which represents the bloc’s executive body) and European social partners. The forum meets twice a year, before the meeting of the European Council, bringing together the Heads of State and Government of the 27 Member States. At this summit, European institutions and social partners exchange views on the issues on the European agenda. On certain occasions, the social partners draw up joint declarations, which they present together to the EU institutions.
In addition to this bi-annual meeting, the European social partners have annual exchanges with government representatives and the European Commission, as well as with the leaders of the European Central Bank (ECB) and the Eurogroup. The latter brings together the finance ministries of eurozone Member States to discuss economic forecasts and the broad economic policy guidelines – a meeting also known as the “Meeting of the Macroeconomic Dialogue”.
European social partners as co-legislators on social/labour matters
According to the Treaty on the Functioning of the European Union (TFEU), the European Commission must consult the relevant European social partners before submitting a proposal on social policy, such as the recognized European trade union and employer organizations operating at the cross-industry or sectoral levels, depending on the scope of the initiative. The consultation procedure is defined by the TFEU. At any time, the European social partners may decide to enter into negotiations to deal with the matter themselves. If they take up this option, they may strike an agreement that could, if they wish, become a regulatory act binding for all Member States. If they do not agree to pursue such negotiations, or fail to reach an agreement, the European Commission is free to present its own text, which will take into account the views expressed during the different consultation stages.
The European Commission’s page outlining this process is here.
Cross-industry and sectoral social dialogue committees
European social partners can also engage in bipartite social dialogue, often through bodies called social dialogue committees, funded by the EU.
The cross-industry social dialogue committee is the main forum for bipartite social dialogue at European level. The body meets several times a year, on the basis of a work programme agreed by the parties, to exchange views on the issues on the agenda and sometimes to draw up joint statements or carry out joint projects.
The Commission’s page presenting the results of the cross-industry social dialogue committee is here.
Furthermore, there are 43 sectoral social dialogue committees. Each committee is mandated to adopt its own work programme and deal with issues that are specific to a sector. In addition to providing a venue for discussions, sectoral committees may pilot test joint projects; sign joint texts and declarations on subjects of common interest; and negotiate agreements. The creation of a sectoral committee is decided by the European Commission, following a joint request from employers and trade unions, who must prove their representativeness at European level.
The Commission’s page presenting the results from the sectoral social dialogue committees is here.
European Works Councils (EWCs)
The EU has adopted a Directive (a European regulation), which, under certain conditions, requires companies with 1,000 employees or more, and 150 or more in at least two Member States, to set up a cross-border staff representation body through negotiations. Today, just over 1,000 companies (both European firms and non-European firms with operations on the continent) have a European Works Council (EWC) which, depending on the agreement negotiated, can be informed of major issues affecting the company. EWCs can even be consulted on decisions that may have an impact on personnel.
The EU Directive on the matter is here. A comprehensive database of negotiated agreements establishing EWC is here
In addition to the regulation on EWCs, two other directives provide for the establishment of a cross-border staff representation body. These apply to companies that adopt the Societas Europae status or that of the European Cooperative Society.