European Framework Agreements in Multinational Companies. What Role for European Labour Law?

Abstract

This article focuses on European Framework Agreements (EFAs) concluded between multinational companies and employee representatives (trade unions, European Works Councils (EWCs)). EFAs have been seen as a chance to revive industrial relations, in particular in countries (e.g., Eastern European countries) where traditional collective bargaining is in a critical condition. The main problem concerning EFAs is, however, the lack of an appropriate legal framework suitable for the transnational nature of the agreements. Although the development of EFAs depends on various factors, including the engagement of the social partners, the lack of any legal framework may be perceived as an obstacle to conducting transnational negotiations and concluding EFAs. Undoubtedly, the most important role in creating a legal framework for transnational agreements should be played by EU law. In the authors’ opinion, the EU has the legal instruments to create a legal framework for EFAs. The best way to create a legal framework for EFAs seems to be in the form of a directive pursuant to Article 153(1)(b) and (f) in conjunction with Article 153(2)(b) of the Treaty on the Functioning of the European Union (TFEU). It is important to adopt solutions that would facilitate negotiations, with a view to ensuring their effectiveness, while providing support mechanisms for monitoring and resolving potential conflicts. However, adopting a framework for EFAs may turn out to be difficult due to the lack of political will. Perhaps the changing reality will induce the stakeholders to resume work on the regulation – the more so as EFAs fit into the European Pillar of Social Rights. European Framework Agreements, Collective Bargaining, Multinational, Companies, Trade Unions, European Works Councils