- at least 1,000 employees within the EEA Member States; and

- at least 150 employees in each of at least two EEA Member States;

- at least 1,000 employees within the EEA Member States;

- at least two group undertakings in different EEA Member States; and

- at least one group undertaking with at least 150 employees in one EEA Member State and at least one other group undertaking with at least 150 employees in another EEA Member State.

1. is entitled to appoint more than half of the members of the other undertaking's board of directors or corresponding management body;

2. controls more than half of the votes attached to the shares or interests of that undertaking; or

3. owns more than half of the shares or interests in the undertaking.

1. when the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings, on its own initiative, initiates negotiations for the establishment of a European Works Council or the establishment of another information and consultation procedure, or

2. when at least 100 employees or their authorised representatives in at least two establishments or undertakings in at least two different EEA Member States request in writing that such negotiations shall be initiated.

1. a supplementary member shall be appointed for each EEA Member State in which at least 25 per cent, but not more than 50 per cent, of the employees of the Community-scale undertaking or Community-scale group of undertakings are situated;

2. two supplementary members shall be appointed for each EEA Member State in which at least 50 per cent, but not more than 75 per cent, of the employees of the Community-scale undertaking or Community-scale group of undertakings are situated;

3. three supplementary members shall be appointed for the EEA Member State in which at least 75 per cent of the employees of the Community-scale undertaking or Community-scale group of undertakings are situated.

The employees' special negotiating body shall inform the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings in respect of its composition.

MANNER OF APPOINTMENT OF SWEDISH MEMBERS

SECTION 16

The Swedish members of employees' special negotiating bodies shall be appointed by the local employees' organization or organizations which is or are bound by collective bargaining agreements in relation to the Community-scale undertaking or one or more undertakings in a Community-scale group of undertakings. Where several local employees' organizations are bound by collective bargaining agreements, the following order for the appointment of members shall apply, unless otherwise agreed upon by such local employees' organizations.

In respect of the appointment of one member, such shall be appointed by the local employees' organization which represents the largest number of the employees in Sweden bound by collective bargaining agreements with the Community-scale undertaking or Community-scale group of undertakings. In respect of the appointment of several members, the order for the appointment of employees' representatives set forth in section 8, second and third paragraphs of the Private Sector Employees Act (SFS 1987 :1245) shall apply ⁽⁰²⁾.

Where the employer is not bound by any collective bargaining agreement in relation to any employees' organization, the Swedish members shall be appointed by the local employees' organization in Sweden which represents the greatest number of employees in relation to the Community-scale undertaking or the Community-scale group of undertakings. The aforementioned shall apply unless otherwise agreed upon by the local employees' organizations.

Local employees' organizations which belong to the same central organization shall be deemed to be one organization.

EXPENSES

SECTION 17

Expenses related to the formation and performance of the tasks of an employees' special negotiating body shall be borne by the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings, to the extent that such expenses are reasonable.

NEGOCIATIONS

SECTION 18

The Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings shall request negotiations with the employees' special negotiating body in order to reach an agreement on a European Works Council or the detailed guidelines for any other information and consultation procedure.

For the purpose of the negotiations, the special negotiating body may be assisted by experts of its choice.

SECTION 19

The employees' special negotiating body may decide, by at least two-thirds of the votes, not to open negotiations in accordance with section 18 or, in order not to enter into an agreement, to terminate negotiations already opened. A request to convene the employees' special negotiating body in order to open or resume negotiations may be made, at the earliest, two years after such a decision, unless otherwise agreed upon by the parties.

SECTION 20

In order for an employees' special negotiating body to enter into an agreement on a European Works Council or any other information and consultation procedure, more than half of the members of the special negotiating body must agree thereon

AGREEMENT

SECTION 21

An agreement on a European Works Council shall determine :

SECTION 22

In lieu of an agreement on a European Works Council, the parties may agree upon another employee information and consultation procedure. Such an agreement shall contain guidelines for the information and consultation procedure and shall stipulate:

APPLICABLE PROVISIONS IN THE ABSENCE OF AN AGREEMENT

WHEN THE RULES SHALL APPLY

SECTION 23

A European Works Council shall be established in accordance with sections 24-35 where:

COMPOSITION OF THE EUROPEAN WORKS COUNCIL

SECTION 24

The European Works Council shall comprise not more than 30 members.

The employees shall be represented in the European Works Council by one representative from each EEA Member State in which the Community-scale undertaking is established or in which the controlling undertaking or any controlled undertaking in a Community-scale group of undertakings is established. In addition thereto:

Unless otherwise agreed, the European Works Council shall, every second year, examine whether changes in the operations of the Community-scale undertaking or the Community-scale group of undertakings should result in a new composition of the European Works Council. Upon such examination, the provisions of the first and second paragraphs shall apply.

SECTION 25

The European Works Council shall notify the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings in respect of its composition.

MANNER OF APPOINTMENT OF SWEDISH MEMBERS

SECTION 26

The Swedish members of the European Works Council shall be appointed from amongst the employees in Sweden of the Community-scale undertaking or Community-scale group of undertakings.

The members of the European Works Council shall be appointed by the local employees' organization or organizations in Sweden which is or are bound by collective bargaining agreements in relation to the Community-scale undertaking or one or more undertakings in a Community-scale group of undertakings. Where several local employees' organizations are bound by collective bargaining agreements, the following order for the appointment of members shall apply, unless otherwise agreed upon by such local employees' organizations.

In respect of the appointment of one member, such shall be appointed by the local employees' organization which represents the largest number of the employees in Sweden bound by collective bargaining agreements with the Community-scale undertaking or Community-scale group of undertakings. In respect of the appointment of several members, the order for the appointment of employees' representatives set forth in section 8, second and third paragraphs of the Private Sector Employees Act (SFS 1987 :1245) shall apply ⁽⁰³⁾.

Where the employer is not bound by a collective bargaining agreement with any employees' organization, the Swedish members shall be appointed by the local employees' organization in Sweden which represents the greatest number of employees in relation to the Community-scale undertaking or the Community-scale group of undertakings. The aforementioned shall apply unless otherwise agreed upon by the local employees' organizations.

Local employees' organizations which belong to the same central organization shall be deemed to be one organization.

RULES OF PROCEDURE AND SELECT COMMITEE

SECTION 27

The European Works Council shall determine its own rules of procedure.

The European Works Council shall, if its size so warrants, elect a select committee from amongst its members, comprising at most three members.

RIGHT OF INFORMATION AND CONSULTATION

SECTION 28

The European Works Council shall have the right of information and consultation with respect to matters concerning :

With respect to such Community-scale undertakings or Community-scale group of undertakings as are referred to in section 5, second and third paragraphs, the powers of the European Works Council shall be deemed to refer to matters concerning :

SECTION 29

The Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings shall, at least once a year, meet with the European Works Council and thereupon consult and provide information in respect of the progress of the business of the Community-scale undertaking or the Community-scale group of undertakings and its prospects.

Prior to the meeting, the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings shall provide the European Works Council with a written report concerning the matters to be discussed at the meeting.

The meeting shall relate in particular to the following matters :

SECTION 30

The Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings shall, as soon as possible, inform the select committee with respect to exceptional circumstances affecting the employees' interests to a considerable extent, particularly in the event of relocations, the closure of establishments or undertakings or collective redundancies.

Where the select committee so requests, the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings shall meet with the select committee in order to inform and consult with the latter regarding such exceptional circumstances as referred to in the first paragraph. Those members of the European Works Council who represent the employees at the establishments or undertakings which are directly affected by the circumstances in question shall also be entitled to participate in such meetings.

Prior to the meeting, the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings shall provide the select committee with a written report concerning the matters to be discussed at the meeting. The select committee shall be entitled to deliver an opinion on the report.

In the absence of a select committee, the aforementioned provisions in relation to the select committee shall be deemed to refer to the European Works Council.

RULES RELATINGS TO THE EUROPEAN WORKS COUNCIL

OR THE SELECT COMMITTEE

SECTION 31

The European Works Council or the select committee may be assisted by experts of its choice.

SECTION 32

The European Works Council or the select committee shall be entitled, at the expense of the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings, to meet separately prior to meetings with the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings.

In addition thereto, the European Works Council shall be entitled, at the expense of the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings, to meet separately once a year.

SECTION 33

The European Works Council or the select committee shall inform representatives of employees at the Community-scale undertaking or Community-scale group of undertakings with respect to the contents of, and expiry of, the information and consultation procedure. In the absence of any employees' representatives, all the employees shall be informed.

SECTION 34

Four years after the European Works Council is established it shall examine whether to open negotiations for the conclusion of an agreement as referred to in sections 21 or 22, or whether sections 24 to 35 shall continue to apply.

Agreements pursuant to sections 21 or 22 shall be concluded by the European Works Council. An agreement may only be concluded by the European Works Council where more than half the members thereof are agreed thereon.

EXPENSES

SECTION 35

The expenses of the European Works Council and the select committee shall be borne by the Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings, to the extent that such expenses are reasonable.

MISCELLANEOUS PROVISIONS

SECTION 36

Employees' special negotiating bodies and a European Works Council may acquire rights and assume obligations and pursue claims before courts and other public authorities.

Upon the commencement of the activities of a European Works Council it shall assume all rights and duties of the special negotiating body and shall become a party to the agreement on a European Works Council.

PROTECTION FOR EMPLOYEE'S REPRESENTATIVES

SECTION 37

The provisions of section 3, first paragraph, section 4 and sections 6-8 of the Position of Union Representatives in the Workplace Act (SFS 1974 :358) shall apply, mutatis mutandis, to employees' representatives who are employed in Sweden and fulfil functions in accordance with this Act ⁽⁰⁴⁾.

DUTY OF CONFIDENTIALTY

SECTION 38

The Community-scale undertaking or the controlling undertaking in a Community-scale group of undertakings may prescribe a duty of confidentiality for employees' representatives and experts who fulfil duties pursuant to this Act, where such is required in the best interests of the undertaking.

A person subject to a duty of confidentiality who receives information on behalf of a European Works Council may, notwithstanding the duty of confidentiality, transmit such information to other members of the European Works Council and the European Works Council's experts. The right to transmit information shall only apply where the provider of the information notifies the recipient in respect of the duty of confidentiality. In such cases, the duty of confidentiality shall also apply to the recipient.

The provisions of the second paragraph shall also apply to members of the employees' special negotiating body and other bodies for information and consultant in accordance with this Act.

DAMAGES

SECTION 39

Whoever breaches this Act or an agreement on a European Works Council or other information and consultation procedure shall compensate for damage which may arise in accordance with the provisions of sections 55, 56, section 57, second paragraph, section 60, first paragraph, 61 and 62 of the Co-determination in the Workplace Act (SFS 1976 :580) ⁽⁰⁵⁾.

In the application of the aforementioned provisions, references to employers shall also apply to Community-scale undertakings or the controlling undertaking in a Community-scale group of undertakings, and references to employees' organizations shall also apply to European Works Councils, employees' special negotiating bodies or other bodies for information and consultation with employers.

LITIGATION

SECTION 40

Cases in relation to the application of this Act shall be conducted in accordance with the provisions of the Judicial Procedure (Labour Disputes) Act (SFS 1974 :371).

In the application of this Act, references to employers shall also apply to Community-scale undertakings or controlling undertakings in a Community-scale group of undertakings, and references to employees' organizations shall also apply to European Works Councils, employees' special negotiating bodies or other bodies for information and consultation with employers. References to collective bargaining agreements shall also apply to such agreements are referred to in this Act.

Cases in relation to the application of this Act shall be dealt with by the Labour Court as a court of first instance.

Cases in relation to the application of section 38 shall be dealt with promptly.

SECTION 41

Where a party wishes to claim damages in accordance with this Act, the provisions of sections 64, 65 and 68 of the Co-determination in the Workplace Act (SFS 1976 :580) shall apply mutatis mutandis ⁽⁰⁶⁾. In the application of section 64, Community-scale undertakings, the controlling undertaking in a Community-scale group of undertakings, European Works Councils, employees' special negotiating bodies and other bodies for information and consultation with employers shall be deemed to have a right to negotiate in accordance with section 10 of the Co-determination in the Workplace Act (SFS 1976 :580) ⁽⁰⁷⁾. The period of time within which claims must be brought pursuant to section 65 shall be eight months.

_______________________

This Act shall enter into force on 22 September 1996.

⁽⁰¹⁾ " A concentration shall not be deemed to arise where:

⁽⁰²⁾ "If more than four-fifths of the employees bound by the collective bargaining agreement at a company or group belong to the same local employees' organisation, that organisation may appoint all of the employees' representatives. If another such organisation represents at least one-twentieth of the employees bond by a collective bargainig agreement, that organisation may, however, appoint one of the alternates.

"If there is no organisation which represents more than four-fifths of the employees bound by a collective agreement with the company or group, the two local employees' organisations which represent the largest number of such employees may appoint one member each and one alternate. If the employees are entitled to three members and three alternates, the larger of the to organisations may appoint two members and two alternates."

⁽⁰³⁾ "If more than four-fifths of the employees bound by the collective bargaining agreement at a company or group belong to the same local employees' organisation, that organisation may appoint all of the employees' representatives. If another such organisation represents at least one-twentieth of the employees bond by a collective bargainig agreement, that organisation may, however, appoint one of the alternates.

"If there is no organisation which represents more than four-fifths of the employees bound by a collective agreement with the company or group, the two local employees' organisations which represent the largest number of such employees may appoint one member each and one alternate. If the employees are entitled to three members and three alternates, the larger of the to organisations may appoint two members and two alternates."

⁽⁰⁴⁾ Section 3, §1 : "An employer may not prevent a trade union representative from performing his duties"

Section 4 : "A trade union representative shall not be subjected to worse conditions of work or terms of employment as a result of his appointment. Following the completion of the appointment, the employee shall be ensured the same or an equivalent position, with respect to working conditions and terms of employment, as if he had not received any trade union appointment."

Section 6 : "A trade union representative is entitled to time off, as required, for performance of the trade union appointment.

The time off may not, however, exceed what is reasonable taking account of circumstances prevailing at the place of work. The time off may not be scheduled in such a manner as to cause any significant impediment to the proper performance of work.

The amont of time off and the time at which it is to be taken shall be determined following discussions between the employer and the employees organisation.."

Section 7 : "The trade union representative shall be entitled to retain his employment benefits in the event that time off is taken for the performance of trade union activities at place of the work.

If trade union activities at the place of work take place at times outside the trade union represntative's normal working hours and this results from a decision taken by the employer, the union representative shall be paid compensation as though the work had been performed on behalf of the employer.

Additional costs incurred shall also be reimbursd, if they are attrbutable to the employer.

Where, according to law, employment benefits are paid on the basis of the amont of time worked, the time referred to in the first and second paragraphs shall be regarded as equivalent to time worked."

Section 8 : "In the event of dismissals as a consequence of a shortage of work and in the context of redundancies, trade union representatives shall, notwithstanding section 22 of the Employment Protection Act (SFS 1982 : 80), be given priority to continued employment, if it is of special importance for the trade union activity at the place of work. If the representative can only be afforted an opportunity to continue his work after a transfer, his right of priority to continued employment shall be contingent upon his having sufficient qualifications for that employment.

Any dismisal which takes place contrary to the first paragraph shall, upon the application of the trade union representative, be declared invalid. The provisions of section 34, second and third paragraphs, 37, 39, 40 and 42 and section 43, second paragraph, of the Employment Protection Act (SFS 1982 : 80) shall apply in this context."

⁽⁰⁵⁾ Section 55 : "In assessing whether, and to what extent, a person has sufferd loss, consideration shall be given to such person's interest in compliance with statutory provisions or provisions in the collective bargaining agreement and to factors other than those of purely economic significance."

Section 56 : "Where an employer or an employee breaches a duty of confidentiality which is referred to in this Act or makes use, without due cause, of any information obtained which is subject to such duty of confidentiality, he shall be liable for any losses incurred as a consequence thereof.

Where any representative of an employer or an organisation is liable for an action referred to in the first paragraph, the employer or the organisation shall be liable for any loss incurred.

No liablility under Chapter 20, section 3 of the Penal Code shall be incurred as a consequence of any circumstances referred to in this section."

Section 57, §2 : "The employee's organsation will also be liable for damage suffered by the employer as a result of the abuse by a representative of the organisation of his position as a member of a special decision-making body established by agreement or where such person acts with gross negligence in such a position."

Section 60, §1 : "Damages may be reduced or waived entirely where such is reasonable under the circumstances."

Section 61 : "Where several persons are jointly responsible for losses, liability for damages shall be divided amongst them according to that which is reasonable under the circumstances."

Section 61 : "Where damages may be payable pursuant to this Act as a consequence of an act or omission by an employee, no other sanction may be invoked against such empoyee unless provided for by law or by a collective bargaining agreement. The above-stated provision shall also apply in circumstances where no damages may be awarded against an employee by reason of the second paragraph of section 56, or section 59.

Notwthstanding the provisions set forth in the first paragraph, where a collective bargaining agreement provides for a sanction other than damages, such sanction may also be applied to an employees' organisation which enterd into the agreement but who is engaged in the type of work referred into that agreement."

⁽⁰⁶⁾ Section 64 : "Any person who possesses a right of negociation pursuant to section 10 and who wishes to claim damages or any other remedy pursuant to this Act or a collective bargaining agreement shall demand negociations within four months of his becoming aware of the circumstances to which the claim relates and not later than two years after the occurence of such circumstances. Where negociations are to take place both locally and centrally pursuant to a collective bargaining agreement, the above-staed provision shall apply to the local negociations. In such circumstances, central negociations shall be called for within two months of the conclusion of the local negociations.

The provisions contained in the first paragraph shall apply mutatis mutandis where a party referred to therein seeks a declaratory judgment that a legal act or a provision in an agreement is void by reason that it constitites a violation of the right of association.

Where a party fails to call for negociations within the time specified, he shall forfeit his right to association."

Section 65 : "Actions in respect of circumstances referred to in section 64 shall be brought within three months of the conclusion of negociations. Where both local and central negociations have taken place, such period shall be calculated from the time at which the central negociations were concluded. Where obstacles to negociations have existed which are not attributable to the plaintiff, the period shall be calculated from the latest time at which negociations should have been held."

Section 68 : "A party who fails to commence an action within the time prescibed shall forfeit his right to commence such action."

⁽⁰⁷⁾ "An employees' organisation shall have the right to negociate with an employer on any matter relating to the relationship between the employer and any member of the organisation who is, or has been, employed by that employer. An employer shall have an equivalent right to negociate with an organisation of employees.

Employees' organisations shall also have the right to negociate, as set forth in the first paragraph of this section, with any organisation of which the employeer is member, and employers' organisations shall have the right to negociate, as set forth in the first paragraph of this section, with any organisation of which the employee is a member."