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New European Law on 'Works Councils' Demands HQ Strategy

By Donald C. Dowling, Jr.
February 01, 2004

A new European Union law coming online next year will force multinationals operating in Europe to set up in-house, shop-level worker groups that, to an American, look a lot like independent unions. The new law threatens to tie a multinational's hands whenever it decides, in the future, to change anything in its European operations.

The good news is that the new law offers substantial freedom to structure worker groups in as business-friendly a way as you want. The catch: You can't delegate the “works councils” problem down to your local European HR, and you have to implement your headquarters-driven strategy this year, during a special window period.

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