MEPs vote on EU company law: towards a more balanced proposal

Today MEPs on the European Parliament’s Legal Affairs Committee voted on the Company Law Package.

The Legal Affairs Committee decided that

  • companies that move their seat from one EU country to another must give full information and consultation rights to their workers, including with the involvement of the European Works Councils.
  • Companies must maintain board level participation rights, and in the case of conversion and division establish such rights so that there are equal rights for all workers throughout Europe.
  • Member States should be able to stop a cross-border conversion, division or merger when it constitutes an artificial arrangement.

“We now have a company law package that balances company mobility with workers’ rights” said Peter Scherrer, Deputy General Secretary of the European Trade Union Confederation. “MEPs have improved the Company Law proposal from the European Commission. We will be following the trilogue negotiations attentively and push to improve the text. In particular enough margin of manoeuver should be left to Member States to stop a cross-border restructuring in case it constitutes an artificial arrangement, to avoid the establishment of letterbox companies.”

“At the same time, it is necessary to maintain during the trilogue negotiations the safeguards introduced for workers’ rights to information, consultation and participation. Democracy at work is a vital ingredient of a fairer and more social Europe.”