Today, despite intense pressure from big business, the European Parliament confirmed the revision of EU legislation on European Works Councils (EWCs), giving workers in multinationals a stronger voice. The Socialists and Democrats, who played a leading role in securing a good agreement, applaud this outcome as a clear win for both workers and companies.

EWCs represent the interests of employees in large multinational companies operating across Europe. Despite EU legislation dating back to 1994, which clearly defines their rights, too many EWCs are still denied vital information. As a result, workers are often excluded from important transnational decisions that directly affect them.

The S&Ds improved several aspects of the revised legislation: ensuring early and binding consultation with workers on EU-level decisions that affect them, promoting more balanced gender representation in EWCs, and introducing stronger financial penalties for violations of consultation rights.

Concretely, the S&Ds succeeded in strengthening workers’ consultation rights by clarifying the definition of “transnational matters”. This ensures that experts assisting EWCs – including trade union representatives – can attend management meetings in an advisory capacity. It also secures the right for EWCs to meet with central management in person at least twice a year to discuss the company’s progress.

Gaby Bischoff, S&D vice-president for social Europe and S&D negotiator on European Works Councils, said:

“Today, too many workers in Europe still find out through the media that they have lost their jobs. This is unacceptable. That is why we urgently need this revised EU legislation on European Works Councils – the only transnational bodies representing employees’ interests.

“Today’s vote was a test of credibility. We are happy that the European Parliament passed it – standing with workers against disinformation spread by big business. No, this reform will not block decisions or harm competitiveness. Quite the opposite. It will bring legal certainty and trust for both workers and companies.

“This is a true milestone in enforcing workers’ consultation rights. With this reform, European Works Councils gain real power – clear rights, binding participation, and stronger protection. This was long overdue. Anyone who wants to shape change needs strong works councils across Europe – for stronger democracy.

“This is a good day for workers in multinationals – they will be more involved in decisions to ensure that digital and green transitions are just, and that profits are shared fairly. The Socialists and Democrats stand with Europe’s workers – so that no one ever again has to read about their own future in the newspaper.”

Note to editors:

This agreement reforms the directive on European Works Councils (EWCs), originally adopted in 1994 and updated in 2009. Their task is to ensure that workers are properly informed and consulted on decisions taken at EU level that could affect their working or employment conditions.

The provisional agreement was negotiated in May 2025 between the European Parliament, the Council representing EU member states, and the European Commission. It needs to be formally adopted by both co-legislators, the European Parliament and the Council. Following today’s confirmation by the European Parliament, it still requires formal adoption by the Council to become law.

The revised directive is expected to enter into force by the end of 2025 or early 2026. EU member states will then normally have two years to transpose it into national laws.