EU enforces worker approval

Too few British firms consult their staff, the EU fears

By the BBC's Shirin Wheeler in Strasbourg

New rules forcing businesses to inform and consult their workers about company developments have been approved by the European Parliament.

The approvals come despite attempts by the British and Irish governments to block the proposals, on the grounds that they are too inflexible.

MEPs hope the legislation will get final approval from member states by the end of the year, but members of the European Parliament are pushing for even tougher extra measures.

Most companies around the European Union are already required by national law to consult their employees before making major changes that could affect them.

Some, like Britain and Ireland, have little specific legislation in this area at all.

Common rules

The plans are an attempt to create common rules as more companies in the EU set up operations across national borders.

A French court has now ruled that the British company, Marks & Spencer, broke French labour law when it failed to consult workers before deciding to close its stores in mainland Europe last spring.

The European Parliament's ruling is controversial

Fiercely lobbied by the business community but overruled by other member states, the British government has resisted the new rules on consultation but at the very least Britain and Ireland want a seven-year transition period to give smaller medium-sized businesses enough time to adapt.

That has been overwhelmingly rejected by members of the European Parliament.

As well as penalties for companies in breach of the law they also want workers representatives' to be able to delay decisions with potentially negative consequences but it is likely there will be some tough negotiations with member states ahead before the final plans can be agreed.