What changed between the draft committee report and the plenary report

Changed:Recital 15: (15) Effective transnational consultation requires a genuine dialogue between central management and European Works Councils, or employees’ representatives in the framework of an information and consultation procedure. This implies that information and consultation need to be conducted in a meaningful and timely way that enables worker’s representatives to express their opinion prior to the adoption of the decisiondecision, which could include business plans, social plans, and process innovations where they may impact on redundancies, and that opinions issued by European Works Councils or employees’ representatives must receive a reasoned response from central management before the latter or other competent organ of the Community undertaking or Community-scale group of undertakings adopts its decision on the proposed measure at issue. An explicit requirement to that effect should be laid down in Directive 2009/38/EC to ensure legal certainty. In thisthat context, it is important to ensure that Community undertakings or Community-scale groups of undertakings can take decisions effectively.effectively and do not result in undue delays in decisions taken by Community undertakings or Community-scale groups of undertakings.

Changed:Recital 15 a (new): (15a) In the case of a disagreement onabout whether to undertake an information or consultation procedure, there is a lack of guidance on how to resolve the negative effects that such disagreements may have on members of European Works Councils and employees'semployee representatives. Therefore, shouldif there beis a dispute with regardsregard to whether an information and consultation procedure should be undertaken, the central management should provide duly substantiated grounds in writing specifying the reasons why the information and consultation provisions ofin this Directive relating to information and consultation are not applicable.

Changed:Recital 15 b (new): (15b) In the context of an information and consultation procedure, the European Works Council or the select committee mayshould be able to request assistance and advice from experts of its choice, such as representatives of competent recognised Community-level trade union organisations. Such experts should be allowed to attend meetings of the European Works Council and meetings with the central management in an advisory capacity. Moreover, Member States can lay down budgetary rules for the operation of a European Works Council.

Changed:Recital 17: (17) In certain Member States, rightsholders under Directive 2009/38/EC encounter difficulties in bringing legal actions to enforce their rights. It is therefore necessary to strengthen Member States’ obligation to ensure effective remedies and access to justice and the supervision by the Commission of their compliance with that obligation. For that purpose, Member States should be required to notify the Commission of how and under which circumstances the rightsholders, including employees’ representatives, members of the special negotiation body and members of a European Works Council, can bring judicial, and where applicable, administrative procedures, in respect of all their rights under this Directive, including the right to form and join trade unions. In addition, Member States should develop mechanisms to encourage mediation and, where appropriate, provide for alternative dispute mechanisms. Moreover, it should be clarified that the relevant procedures have to enable a timely and effective enforcement, and that possible prior out-of-court settlement procedures can neither result in a decision which is binding on the parties concerned, nor prejudice rightsholders’ right to bring legal proceedings. However, Membersmembers of special negotiations bodies,bodies and members of European Works Councils and employees’ representatives should enjoy the same protection and guarantees equivalent to those provided to employees’ representatives by national legislationlaw or practice applicable in their country of employment.

Changed:Recital 18: (18) The Commission’s 2018 evaluation of Directive 2009/38/EC has shown that sanctions applicable in the case of non-compliance with transnational information and consultation requirements regretfully are often not sufficiently dissuasive, effective or proportionate. Therefore, it is appropriate to lay down the Member States’ obligation to provide for effective, dissuasive and proportionate sanctions. Financial penalties should be provided for in case of failure to comply with the information and consultation procedures set out in Directive 2009/38/EC. Other forms of sanctions should also be provided for, including administrative and judicial procedures. In line with national law and practice, Member States should ensureprovide thefor a possibility to request a preliminary injunction in national courts or other competent authorities for a temporary suspension of the implementation of management decisions until an information and consultation procedure has taken place at the relevant level of management and representation and in such a way as to enable a reasoned response from the central management in accordance with this Directive. Financial sanctions should be determined taking into consideration the size and financial situation of the Community-scale undertaking or group – for example, based on its annual turnover – and any other relevant factors – such as the gravity, duration, consequences, and intentional or negligent nature of the offence –, in order to be effective, dissuasive an…dissuasive…

Removed:Recital 19: deleted / (deleted)

Added:Recital 19: (19) Undertakings with an agreement on the transnational information and consultation of employees concluded before 23 September 1996, that is to say prior to the date of application of Council Directive 94/45/EC1a, are exempted from the application of the obligations arising from Directive 2009/38/EC. The employee information and consultation bodies established under such agreements have been concluded and continue to operate outside the scope of Union law and their legal status should be ensured by civil or collective labour law, depending on the different legal system of each Member State. Directive 2009/38/EC does not provide the employees in the exempted undertakings with the possibility to request an establishment of a European Works Council under that Directive. However, for reasons of legal clarity, equal treatment and effectiveness, employees and their representatives in all Community-scale undertakings or Community-scale groups of undertakings should in principle have the right to request the establishment of a European Works Council. Almost 30 years after a legislative framework setting minimum requirements for the transnational information and consultation of employees was first established at Union level, those reasons prevail over the considerations of continuity for pre-existing agreements which initially motivated the exemption. That exemption should therefore be deleted.

Changed:Recital 19 a (new): (19a) After more than 25 years from the adoption of Council Directive 94/45/EC, many pre-directive agreements are still in force and have not been adapted to the requirements of Directive 2009/38/EC. It is essential that all European Works Council agreements are governed by the same rights and obligations in order to ensure equal treatment of workers, access to the application of high Union standards, and legal certainty. With a view to creating a regulatory level-playing field governing the functioning of European Works Councils, the rights and obligations arising from Directive 2009/38/EC should be applicable to all European Works Council agreements and agreements on an information and consultation procedure concluded in accordance with Articles 5 and 6 of Directive 94/45/EC or in accordance with Articles 5 and 6 of this Directive. All agreements which have been concluded pursuant to Article 13(1) of Directive 94/45/EC and agreements concluded pursuant to Article 6 of Directive 94/45/EC which were signed or revised between 5 June 2009 and 5 June 2011 should fall within the scope of this Directive without any obligation to renegotiate.

Added:Recital 21: (21) European Works Councils operating based on the subsidiary requirements set out in Annex 1 to Directive 2009/38/EC have the right to meet with central management once a year, to be informed and consulted on the progress of the business of the relevant Community-scale undertaking or Community-scale group of undertakings and its prospects. In order to strengthen the transnational information and consultation of those European Works Councils, it is appropriate to increase the number of such annual plenary meetings in the subsidiary requirements to at least two. When appropriate and agreed upon and while ensuring meaningful information and consultation, digital means of communication and coordination can be used in exceptional cases without replacing ordinary meetings.

Added:Recital 24: (24) Existing European Works Council agreements or agreements on information and consultation procedures, concluded under Directive 94/45/EC or Directive 2009/38/EC before the entry into force of the measures adopted by Member States to transpose this Directive, may not be in conformity with the revised required contents of those agreements. It is therefore appropriate to set out transitional arrangements enabling the parties to such agreements to negotiate addenda, without, however, requiring a complete re-negotiation of the agreement. In order not to allow for any interruption of the information and consultation of employees, the existing European Works Council agreement or agreement on information and consultation procedure is to remain in force during the negotiation of such addenda.

Added:Recital 24 a (new): (24a) If the central management initiates negotiations to supplement an existing European Works Council agreement or agreement on information and consultation procedures in accordance with the requirements of this Directive, there is no obligation to renegotiate the entire existing agreement. The amended requirements should be negotiated as an addendum within 2 years of the date of transposition of this Directive. Provision should be made for the subsidiary requirements specifically relating to the amended requirements to apply in the absence of an agreement on the addendum within that time limit.

Added:Recital 24 b (new): (24b) It is necessary to ensure that the special negotiation body has the opportunity to meet regularly with the central management in order to be able to conduct meaningful negotiations. Where the conditions laid down in Article 7(1) are met, it should be clarified that it is the responsibility of the central management to initiate the establishment of a European Works Council according to the subsidiary requirements.

Changed:Article 1 – paragraph 1 – point 1, Article 1 – paragraph 4 – subparagraph 2 – point b: (b) the measures considered by management ofin the Community-scale undertaking or Community-scale group of undertakings can reasonably be expected to affect workers in an undertaking or establishment in one Member State, and workers in an undertaking or establishment in anotherat least one other Member State can reasonably be expected to be substantially affected by the consequences of those measures.”; or

Changed:Article 1 – paragraph 1 – point 1, Article 1 – paragraph 4 – subparagraph 2 – point b a (new): (ba) the measures considered by central management of the Community-scaleCommunityscale undertaking or Community-scale group of undertakings arecan takenreasonably be expected to affect workers in a Member State other than that in which those effectsmeasures are produced.’;being considered.

Changed:Article 1 – paragraph 1 – point 1, Article 1 – paragraph 4 a (new): 4a. In order to determine the transnational character of a matter, the scope of its possible effects on the workforce and the level of management and representation involved shall be taken into account. This includes matters which, irrespective of the number ofshall Memberinclude Statesmatters involved,which are of concern to workers in terms of the scope of their potential impact,impact in two or more Member States, as well as matters which involve the transfer of activities between two or more Member States.

Changed:Article 1 – paragraph 1 – point 2, Article 2 – paragraph 1 – point g:f: (g)“(f) ‘consultation’‘information’ means the establishmenttransmission of dialoguedata andby exchangethe ofemployer viewsto betweenthe employees’ representatives andin centralorder managementto orenable anythem moreto appropriateacquaint levelthemselves ofwith management,the subject matter and to examine it and is given at such time, in such fashion and with such content as enables employees’are representativesappropriate to express a prior opinion on the basis of the information provided about theenable proposedemployees’ measuresrepresentatives to which the consultation is related, without prejudiceundertake toan thein-depth responsibilitiesassessment of the management,their andpossible withinimpact aand, reasonablewhere time,appropriate, whichprepare isfor toconsultations bewith takenthe intocompetent accountorgan withinof the Community-scale undertaking or Community-scale group of undertakings. Consultation shall take place in such a way as to enable employees’ representatives to obtain a reasoned response in due time from the central management prior to the adoption of the decision;”;undertakings;

Removed:Article 1 – paragraph 1 – point 3 – point – a (new), Article 5 – paragraph 1: (-a) paragraph 1 is replaced by the following: / ‘1. In order to achieve the objective set out in Article 1(1), the central management shall initiate negotiations for the establishment of a European Works Council or an information and consultation procedure on its own initiative or at written request, either jointly or separately, of at least 100 employees or their representatives in at least two undertakings or establishments in at least two different Member States.’;

Added:Article 1 – paragraph 1 – point 2, Article 2 – paragraph 1 – point g: (g) ‘consultation’ means the establishment of dialogue and exchange of views between employees’ representatives and central management or any more appropriate level of management at such time, in such fashion and with such content as enables employees’ representatives to express a prior opinion on the basis of the information provided about the proposed measures to which the consultation is related, without prejudice to the responsibilities of the management, and within a reasonable time, which is to be taken into account within the Community-scale undertaking or Community-scale group of undertakings. Consultation is to take place in such a way as to enable employees’ representatives to obtain a reasoned written response in due time from the central management prior to the adoption of the decision provided the employee representatives expressed their opinion within a reasonable time in accordance with the first sentence;

Removed:Article 1 – paragraph 1 – point 3 – point -a a (new), Article 5 – paragraph 2 – introductory part: (-aa) the introductory wording of paragraph 2 is replaced by the following: / 2. For this purpose, a special negotiating body shall be established within six months of the date of a request pursuant to paragraph 1, with a possible 6-month extension, in accordance with the following guidelines:

Added:Article 1 – paragraph 1 – point 2, Article 2 – paragraph 1 –subparagraph 1 a (new): For the purposes of point (c) of the first subparagraph, employees of controlling and controlled undertakings within the meaning of Article 3(2), point (ca), shall also be taken into account in the definition of a Community-scale group of undertakings;

Removed:Article 1 – paragraph 1 – point 3 – point a a (new), Article 5 – paragraph 4 – subparagraph 3: (aa) in paragraph 4, the third subparagraph is replaced by the following: / ‘For the purpose of the negotiations, the special negotiating body may request assistance from representatives of competent recognised Community-level trade union organisations and, if needed, further experts of its choice. Such experts and such trade union representatives may be present at negotiation meetings in an advisory capacity at the request of the special negotiating body.’;

Added:Article 1 – paragraph 1 – point 2 a (new), Article 3 – paragraph 1: (2a) in Article 3, paragraph 1 is replaced by the following: / ‘1. For the purposes of this Directive, ‘controlling undertaking’ means an undertaking which can exercise a dominant influence over another undertaking (the controlled undertaking) by virtue, for example, of ownership, financial participation, control over decisions or the rules which govern it.’

Removed:Article 1 – paragraph 1 – point 3 – point b – indent 1, Article 5 – paragraph 6 – subparagraph 1: “These expenses shall include reasonable costs of experts, including a representative of a recognised Community-level trade-union, for legal assistance, insofar as necessary for that purpose, as well as reasonable costs of legal representation and participation in administrative or judicial proceedings. Expenses shall be notified to central management before they are incurred.”;

Added:Article 1 – paragraph 1 – point 2 b (new), Article 3 – paragraph 2 – point c a (new): (2b) in Article 3(2), the following point is added: / (ca) operates directly or indirectly in the internal market selling goods or providing services through franchise or license agreements concluded with independent third-party companies in return for royalties where such agreements ensure a common identity, a common business name or concept and the application of uniform business methods.

Removed:Article 1 – paragraph 1 – point 4 – point a – indent 1: – points (b), (c) and (d) are replaced by the following:

Removed:Article 1 – paragraph 1 – point 4 – point a – indent 1, Article 6 – paragraph 2 – point b: ‘(b) the composition of the European Works Council, the number of members, the allocation of seats, taking into account where possible the need for balanced representation of employees with regard to their activities and category, and representation of employees with regard to their activities and category, and the term of office, including, when allocating the seats, a set of procedural requirements to attain a gender-balanced representation;’

Added:Article 1 – paragraph 1 – point 3 – point -a (new), Article 5 – paragraph 1: (-a) paragraph 1 is replaced by the following: / ‘1. In order to achieve the objective set out in Article 1(1), the central management shall initiate negotiations for the establishment of a European Works Council or an information and consultation procedure on its own initiative or at the either joint or separate written request of at least 100 employees or their representatives in at least two undertakings or establishments in at least two different Member States.’

Removed:Article 1 – paragraph 1 – point 5: (5) Article 7, paragraph 1 is amended as follows: / (a) the second and third indents are replaced by the following:

Removed:Article 1 – paragraph 1 – point 5, Article 7 – paragraph 1 – indent 3: ‘— where, after 18 months from the date of such a request, they are unable to conclude an agreement as laid down in Article 6 and the special negotiating body has not taken the decision provided for in Article 5(5).’

Added:Article 1 – paragraph 1 – point 3 – point a, Article 5 – paragraph 2 – point b: “(b) The members of the special negotiating body shall be elected or appointed in proportion to the number of employees employed in each Member State by the Community-scale undertaking or the Community-scale group of undertakings, in a manner that strives to achieve a gender-balanced representation, whereby women and men each hold at least 40% of the posts of member of the special negotiating body, by allocating in respect of each Member State one seat per portion of employees employed in that Member State, amounting to 10%, or a fraction thereof, of the number of employees employed in all the Member States taken together. If this objective is not reached, the reasons shall be explained in written by the special negotiating body;”;

Removed:Article 1 – paragraph 1 – point 5 – point b (new), Article 7 – paragraph 1 – indent 3 a (new): (b) the following indent is added: / — where an agreement as laid down in Article 6 has been terminated and no new agreement has been concluded until the last day of validity of that agreement.

Added:Article 1 – paragraph 1 – point 3 – point a a (new), Article 5 – paragraph 4 – subparagraph 3: (aa) in paragraph 4, the third subparagraph is replaced by the following: / ‘For the purpose of the negotiations, the special negotiating body may request assistance from representatives of competent recognised Community-level trade union organisations and, if needed, further experts. Such experts and such trade union representatives may be present at negotiation meetings in an advisory capacity at the request of the special negotiating body.’

Removed:Article 1 – paragraph 1 – point 6, Article 8 – paragraph 1: 1. Member States shall provide that members of special negotiating bodies, members of European Works Councils or employees’ representatives in the framework of an information and consultation procedure, and any experts who assist them, within the conditions and limits laid down by Union and national law and subject to objective criteria, are not authorised to reveal information which has expressly been provided to them in confidence by central management. In addition, central management may set up adequate information transmission and storage arrangements to help safeguard the confidentiality of information provided in confidence.

Added:Article 1 – paragraph 1 – point 3 – point b – indent 1, Article 5 – paragraph 6 – subparagraph 1: “These expenses shall include reasonable costs of experts, including a representative of a recognised Community-level trade-union, for legal assistance, insofar as necessary for that purpose, as well as reasonable costs of legal representation and participation in administrative or judicial proceedings. Expenses shall be notified to and approved by central management before they are incurred.”;

Added:Article 1 – paragraph 1 – point 4 – point a – indent 2, Article 6 – paragraph 2 – point f – subparagraph 2: deleted / (deleted)

Added:Directive 2009/38/EC

Added:Article 1 – paragraph 1 – point 4 – point b, Article 6 – paragraph 2 a (new): “2a. The central management and the special negotiating body, when negotiating a European Works Council agreement, shall agree and lay down the necessary arrangements for attaining, and without prejudice to national laws on electing workers representatives, the objective of gender balance whereby women and men each comprise at least 40 % of European Works Council members, and where applicable, at least 40 % of select committee members. ”;

Added:Directive 2009/38/EC

Added:Article 1 – paragraph 1 – point 4 a (new), Article 7 – paragraph 1 – introductory part: (4a) in Article 7(1), introductory part is replaced by the following: / ‘1. In order to achieve the objective set out in Article 1(1), the subsidiary requirements laid down by the legislation of the Member State in which the central management is situated shall apply with immediate effect:’

Added:Directive 2009/38/EC

Added:Article 1 – paragraph 1 – point 5 a (new), Article 7 – paragraph 1 – indent 2 a (new): (5a) in Article 7(1), the following indent is inserted after the second indent: / “— where the special negotiating body is not convened on a regular basis,’

Added:Directive 2009/38/EC

Added:Article 1 – paragraph 1 – point 5 b (new), Article 7 – paragraph 1 – indent 3: (5b) in Article 7(1), the third indent is replaced by the following: / ‘— where, after 24 months from the date of such a request, they are unable to conclude an agreement as laid down in Article 6 and the special negotiating body has not taken the decision provided for in Article 5(5).’

Added:Directive 2009/38/EC

Added:Article 1 – paragraph 1 – point 5 c (new), Article 7 – paragraph 1 – indent 3 a (new): (5c) in Article 7(1), the following indent is added: / ‘— where an agreement as laid down in Article 6 has been terminated and no new agreement has been concluded within 24 months after the last day of validity of that agreement.’

Added:Directive 2009/38/EC

Added:Article 1 – paragraph 1 – point 6, Article 8 – paragraph 1: 1. Member States shall provide that members of special negotiating bodies, members of European Works Councils or employees’ representatives in the framework of an information and consultation procedure, and any experts who assist them, are not authorised to reveal information which has expressly been provided to them in confidence by central management within the conditions and limits laid down by Union and national law and subject to objective criteria. In addition, central management may set up adequate information transmission and storage arrangements to help safeguard the confidentiality of information provided in confidence.

Added:Directive 2009/38/EC

Removed:Article 1 – paragraph 1 – point 6, Article 8 – paragraph 3 a (new): 3a. Paragraph 1 shall not apply to members of the European Works Council who reveal information to national or local work councils that may affect the situation of workers where such information has been provided to them in confidence and is subject to national rules on confidentiality

Added:Article 1 – paragraph 1 – point 6, Article 8 – paragraph 3: 3. The obligation referred in paragraph 1 shall continue to apply, wherever the persons referred to in paragraph 1 are, even after the expiry of their terms of office, until the justification provided is considered to have become obsolete.”;

Added:Article 1 – paragraph 1 – point 6, Article 8 – paragraph 3 a (new): 3a. Paragraph 1 shall not apply to members of the European Works Council who reveal information to national or local work councils that may affect the situation of workers where such information has been provided to them in confidence and is subject to national rules on confidentiality.

Added:Directive 2009/38/EC

Changed:Article 1 – paragraph 1 – point 8, Article 9 – paragraph 2: 2. Information on transnational matters shall be given at such time, in such fashion and with such content as are necessary and sufficient to enable the European Works Council andto consult relevant employees’ representatives at national and local levellevel, to undertake an in-depth assessment of their possible impactimpact, and, where appropriate, prepare for meaningful consultations with the competent organ of the Community-scale undertaking or Community-scale group of undertakings.

Changed:Article 1 – paragraph 1 – point 8, Article 9 – paragraph 3 a (new): 3a. In duly justified casesand exceptional cases, where the adoption of a decision requires urgency, management and employees’ representatives shall carry out an effective information and consultation process in accordance with paragraphs 2 and 3 as quickly as possible. When appropriate,appropriate and agreed upon, digital means of communication and coordination can be used for thisthat purpose.

Changed:Article 1 – paragraph 1 – point 8, Article 9 – paragraph 3 c (new): 3c. In so far as it is necessary for the European Works Council to carry out its tasks, the European Works Council or the select committee may request assistance from experts of its choice. Such experts may include representatives of competent recognised Community-level trade union organisations. At the request of the European Works Council, such experts shall be present at meetings of the European Works Council and meetings with the central management in an advisory capacity. In accordance with this Article, the Member States may lay down budgetary rules regarding the operation of the European Works Council.

Changed:Article 1 – paragraph 1 – point 8, Article 10 – paragraph 1: 1. Without prejudice to the competence of other bodies or organisations in this respect, the employees’ representatives, including the members of the special negotiating body andbody, the members of the European Works Council,Council and the employees’ representatives shall have the means and legal capacity required to apply the rights arising from this Directive, to represent collectively the interests of the employees of the Community-scale undertaking or Community-scale group of undertakings.

Changed:Article 1 – paragraph 1 – point 8, Article 10 – paragraph 2: 2. Without prejudice to Articles 8 and 8a, the members of the European Works Council shall have the right and necessary means to inform the representatives of the employees of the establishments or of the undertakings of a Community-scale group of undertakings or, in the absence of representatives, the workforce as a whole, of the content and outcome of the information and consultation procedure, carried out and whenever it deems it necessary to perform its tasks deriving from this Directive, in particular before and after the its meetings with the central management.

Changed:Article 1 – paragraph 1 – point 8, Article 10 – paragraph 3 – subparagraph 2 c (new): In cases whereWhere a member of a special negotiating body or of a European Works Council, or such a member's alternate, who is a member of the crew of a seagoing vessel, is unable to attend a meeting, the possibility of using, where possible, new information and communication technologies shall be considered.

Changed:Article 1 – paragraph 1 – point 8, Article 10 – paragraph 4 – subparagraph 2:1: TheIn costsso offar suchas trainingthis is necessary for and relatedlinked expensesto shallthe beexercise borneof bytheir representative duties in an international environment, the centralmembers management,of providedthe thatspecial negotiating body and of the centralEuropean managementWorks hasCouncil beenshall informedbe inprovided advance.”;with training without loss of wages.

Removed:Article 1 – paragraph 1 – point 9 – point a, Article 11 – paragraph 2 – subparagraph 1 – introductory part: “Member States shall provide for measures in the event of failure to comply with the national provisions adopted pursuant to this Directive. In particular, they shall ensure that:”

Added:Article 1 – paragraph 1 – point 8, Article 10 – paragraph 4 – subparagraph 2: Without prejudice to agreements concluded pursuant to Article 6(2), point (f), the costs of such training and related expenses shall be borne by the central management, or any other appropriate level of management, provided that the central management or any other appropriate level of management, has been informed in advance.

Changed:Article 1 – paragraph 1 – point 9 – point a, Article 11 – paragraph 2 – point b – subparagraph 1 a (new) – introductory part: The penalties referred to in point b) of this paragraph(b) shall include:

Changed:Article 1 – paragraph 1 – point 9 – point a, Article 11 – paragraph 2 – point b – subparagraph 1 a (new) – point i (new):i: (i) financial penalties that are proportionate to the nature, gravity and duration of the undertaking’s infringement and which shall increase in amount according to the number of affected employees;

Changed:Article 1 – paragraph 1 – point 9 – point a, Article 11 – paragraph 2 – point b – subparagraph 1 a (new) – point ii (new):ii: (ii) orders excluding the undertaking from an entitlement to some or all public benefits, aids or subsidies, including Union funds managed by the relevant Member States, for a period of up to three years;

Changed:Article 1 – paragraph 1 – point 9 – point a, Article 11 – paragraph 2 – point b – subparagraph 1 a (new) – point iii (new):iii: (iii) orders excluding the undertaking from participating in a public contract as defined in Directive 2014/24/EU of the European Parliament and of the Council1a. / 1a Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).

Changed:Article 1 – paragraph 1 – point 9 – point a, Article 11 – paragraph 2 – subparagraph 2: In the case of infringements as referred to in point (b),of(b) of this paragraph, which are not committed intentionally, the financial penalties referred to in point (a) of this paragraph, shall be substantive and equivalent to those provided for in Article 83(4) of Regulation (EU) 2016/6791a. / 1a Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).

Changed:Article 1 – paragraph 1 – point 9 – point a, Article 11 – paragraph 2 – subparagraph 3: In the case of infringements as referred to in point (b) of this paragraph which are committed intentionally, the financial penalties referred to in point (a) of this paragraph shall be substantive and equivalent to those provided for in Article 83(5) of Regulation (EU) 2016/679.2016/679.”;

Changed:Article 1 – paragraph 1 – point 9 – point b – indent 1 a new,(new), Article 11 – paragraph 3 – subparagraph 1 a (new): – the following subparagraph is inserted after the first subparagraph: / "The central management shall bear the judicial costs incurred in carrying out the procedures, the costs of legal representation and subsidiary costs such as subsistence and travel expenses for at least one employees' representative;"

Removed:Article 1 – paragraph 1 – point 12, Article 14a – paragraph 1: 1. By … [two years after the deadline for transposition of this amending Directive], the obligations arising from this Directive shall be applicable to European Works Council agreements or agreements on an information and consultation procedure concluded before [OP: insert date from which the transposing provisions are to apply, set out in the Article 2(1), 2nd subpar. of this amending Directive] in accordance with Articles 5 and 6 of Directive 94/45/EC or Articles 5 and 6 of this Directive. All agreements which have been concluded pursuant to Article 13(1) of Directive 94/45/EC and agreements concluded pursuant to Article 6 of Directive 94/45/EC which were signed or revised between 5 June 2009 and 5 June 2011 shall fall within the scope of this Directive without any obligation to renegotiate.

Added:Article 1 – paragraph 1 – point 9 – point c, Article 11 – paragraph 4: “4. Member States are encouraged to develop out-of-court mediation procedures enabling both parties to find acceptable solutions. Where Member States make access to legal proceedings conditional upon the prior implementation of an alternative dispute resolution, that procedure shall neither result in a decision which is binding on the parties concerned, nor otherwise prejudice their right to bring legal proceedings.”;

Removed:Article 1 – paragraph 1 – point 12, Article 14a – paragraph 3: 3. Where an adaptation procedure does not lead to an agreement within 18 months from the date of the respective request by employees or their representatives, the subsidiary requirements set out in Annex I shall apply.”;

Added:Article 1 – paragraph 1 – point 9 a (new), Article 12 – paragraph 2: (9a) in Article 12, paragraph 2 is replaced by the following: / 2. The arrangements for the links between the information and consultation of the European Works Council and national employee representation bodies shall be established by the agreement referred to in Article 6 in order to ensure good coordination between information and consultation processes within the European Works Council and those established at national level. That agreement shall be without prejudice to the provisions of national law and/or practice on the information and consultation of employees.

Removed:Article 1 – paragraph 1 – point 12 a (new), Article 15 – paragraph 1 a (new): (12a) in Article 15, the following paragraph is added: / When making such proposals, the Commission shall assess the possibility of including contracts which enable structurally independent undertakings to influence one another's operation and business decisions (such as franchising or management contracts) within the scope of Directive 2009/38/EC, in order to prevent possible gaps.

Added:Article 1 – paragraph 1 – point 10, Article 12 – paragraph 6: deleted / (deleted)

Removed:Article 1 – paragraph 1 – point 12 b (new), Article 16 – paragraph 2 a (new): (12b) in Article 16, the following paragraph is added: / “2a. Member States shall notify the Commission of the measures taken referred in Article 11(2) at the earliest opportunity.”

Added:Article 1 – paragraph 1 – point 12, Article 14a – paragraph 1: 1. Where a European Works Council agreement or agreement on an information and consultation procedure concluded before [OP: insert date from which the transposing provisions are to apply, set out in the Article 2(1), 2nd subpar. of this amending Directive] in accordance with Articles 5 and 6 of Directive 94/45/EC or Articles 5 and 6 of this Directive does not determine all the elements listed in Article 6(2), as amended by [OP: insert reference to this amending Directive] central management shall initiate negotiations by ... [one year from date of entry into force of this Directive] for the establishment of an addendum, determining the elements not determined by the existing European Works Council agreement or agreement on an information and consultation procedure.

Added:Article 1 – paragraph 1 – point 12, Article 14a – paragraph 2: 2. Where the European Works Council agreement or agreement on an information and consultation procedure contains procedural arrangements for its adaptation, the establishment of the addendum may be negotiated pursuant to those arrangements. Otherwise, the establishment of the addendum shall follow the procedure set out in Article 5 in conjunction with Article 13, second and third paragraphs.

Added:Directive 2009/38/EC

Added:Article 1 – paragraph 1 – point 12, Article 14a – paragraph 3: 3. Where an adaptation procedure initiated pursuant to paragraph 1 does not lead to an agreement on the addendum within two years following the initiation of the negotiations, the subsidiary requirements set out in Annex I in respect of the elements not determined in the existing European Works Council agreement or agreement on an information and consultation procedure shall apply.”;

Added:Directive 2009/38/EC

Added:Article 1 – paragraph 1 – point 12 a (new), Article 15 a (new): (12a) The following article is inserted: / ‘Article 15a / Monitoring / 1. To ensure the correct application of the Directive and to address and resolve practical problems arising from its implementation, a monitoring committee shall be established. / 2. The monitoring committee shall be composed by one representative per Member State, three representatives of each of the European social partners, and the Commission. / 3. The monitoring committee shall meet twice per year and shall be chaired by the Commission.’

Added:Article 2 – paragraph 2 a (new): “2a. Member States shall notify the Commission of the measures taken pursuant to Article 11(2) at the earliest opportunity.”

Added:Directive 2009/38/EC

Added:Annex 1 – paragraph 1 – point 1 – point a a (new), Annex 1 – point 1 – point a – paragraph 2: (aa) in paragraph 1, the second subparagraph of point (a) is replaced by the following: / The information of the European Works Council on transnational matters shall relate in particular to the structure, economic and financial situation, probable development and production and sales of the Community-scale undertaking or group of undertakings. The information and consultation of the European Works Council shall relate in particular to the situation and probable trend of employment, working conditions, skills and training policies including in franchise networks, and substantial changes concerning organisation, introduction of new working methods or production processes, transfers of production, mergers, cut-backs or closures of undertakings, establishments or important parts thereof, and collective redundancies.

Added:Directive 2009/38/EC

Added:Annex 1 – paragraph 1 – point 1 – point c, Annex 1 – point 1 – point dd: “(dd) European Works Council members and those of select committee shall represent the diversity of the workforce and women and men shall each comprise at least 40% of European Works Council members and of select committee members.

Added:Directive 2009/38/EC

Added:Annex 1 – paragraph 1 – point 2, Annex 1 – point 2: “2. The European Works Council shall have the right to meet in person with the central management at least twice a year, to be informed and consulted, on the basis of a report drawn up by the central management, on the progress of the business of the Community-scale undertaking or Community-scale group of undertakings and its prospects. The local managements shall be informed accordingly. When appropriate and agreed upon and while ensuring meaningful information and consultation, digital means of communication and coordination can be used in exceptional cases without replacing ordinary meetings.”

Added:Directive 2009/38/EC

Added:Directive 2009/38/EC

Added:Annex 1 – paragraph 1 – point 3 a (new), Annex 1 – point 4 a (new): 4a. Information and consultation procedures within the European Works Council shall be carried out without prejudice to those taking place at the national level. Where a procedure is already taking place at the national level, the European Works Council and the central management shall ensure that those procedures can complement each other with respect to the content and the timing of the procedures.

Added:Directive 2009/38/EC

Added:Annex 1 – paragraph 1 – point 5 – point a, Annex 1 – point 6 – paragraph 3a: The operating expenses of the European Works Council shall include reasonable costs of legal assistance, representation and proceedings, and relevant training to members of the European Works Council. Operating expenses shall be notified to central management before they are incurred.

Changed:– having regard to the opinionAfter ofconsulting the Committee of the Regions,

Changed:Recital 12: (12) When sharing sensitive information with members of European Works Councils, members of special negotiating bodies, or employees’ representatives in the framework of an information and consultation procedure, management has the possibility to provide that such information is shared in confidence and should not be disclosed further. This should not apply to situations whenin which members of the European Works Council decide to reveal information to national or local work councils that may affect the situation of workers. When sharing information in confidence, central management should be required to provide at the same time a reasonable justification based on objective criteria. Setting up adequate arrangements to safeguard the confidentiality of sensitive information can instil trust and facilitate the sharing of such information, while protecting business and workers’ interests, including to avert growing risks such as industrial espionage.

Changed:Article 1 – paragraph 1 – point 1, Article 1 – paragraph 4 – subparagraph 2 – point a: (a) the measures considered by management ofin the Community-scale undertaking or Community-scale group of undertakings can reasonably be expected to affect workers in undertakings or establishments in more than one Member State; or