Representatives of employers' organizations and companies from Slovenia, Macedonia and Montenegro participated in a study visit to Ljubljana on June 13-14th 2013 as part of the WIM project ('Workers' involvement for better and sustainable management in undertakings'). As conclusion of the visit, partners met to discuss and review current and upcoming project activities.
The purpose of the study visit was to exchange and convey best practice examples, knowledge and experience dealing with workers' involvement in decision-making processes to improve bipartite social dialogue at the sectoral and company levels.
PARTICIPANTS LEARNED ABOUT THE ACTIVITIES OF GORENJE d.d. WORKS COUNCIL
Mr Peter Kobal, who has been Chairman of the Works Council of Gorenje d.d. since 1997 and who was appointed member of the Supervisory Board of Gorenje in 1998, familiarized the study visit participants with practical tasks and activities carried out by Works Council, as well as its competences. He emphasized that the involvement of workers in decision-making processes can be of great help to employers. Also, workers' involvement can lead to better and more sustainable decisions.
Mr Kobal discussed both the role of the Management Board and the role of employers' representatives, emphasizing the added value of cooperation and balancing the interests of both sides in decision-making processes. Gorenje d.d. therefore offers a best practice example exceeding the regulatory requirements for involvement of employee representatives and their contribution in the management processes - the law provides only the minimum requirements which, without determined efforts from the management, usually create conflict rather than partnership. In short, the regulatory framework does not provide any added value to the previously adopted or planned managerial decisions. The added value of exemplary cooperation is revealed in positive managerial decisions which cannot be implemented by law, but rather have to be developed gradually, which naturally requires time.
The Gorenje Group is a leading European manufacturer of household appliances with over 60 years of experience. With transnationality being one of their clear priorities, the Group established a European Works Council in order to facilitate communication with Central Management where all important decisions are made. Central Management supplies the European Works Council with information on company operations affecting employees' interests and consults with the Council. Thus, an exchange of opinions and dialogue between the Management Board and employee representatives are ensured.
ADECCO H.R. AND THE EUROPEAN WORKS COUNCIL
The practical aspect of establishing the European Works Council was presented by Mr Damir Battisti of Adecco, the world's leading provider of HR solutions with branches in over 60 countries.
Mr Battisti explained the process of finalizing the European Works Council agreement for the Adecco Group. In the preamble, the agreement stresses the importance of European integration also on the level of connected companies. Later on, the role, competences, composition and operations of Adecco Group European Works Council are defined. The agreement precisely defines the number of employee representatives from different countries in the Council, but the manner of electing or appointing these representatives in respective countries is a matter to be agreed on by the management and representative trade unions in the company or elected employee representatives in the company. The European Works Council convenes twice a year for a two-day session. The matters relating to disseminating information and consulting at the European level mainly include: the economic and financial situation of the company as a whole, current production and sales figures, research and technological development strategies, production programs, rationalization, reorganization and restructuring, changes to production and work methods, reducing or transferring work and the closing of branches, takeovers, sales and mergers, decisions influencing employment, vocational training, employees' position and the working conditions for the employed.
Mr Anže Hiršl, independent legal adviser at ZDS, presented the legal framework of the European Works Council, particularly its establishing stages. He pointed out the possibility given to employers of initiating the establishment of a European Works Council, which also highlights the interest of companies in this issue. After all, the European Works Council is a possible tool for ensuring at least a minimum flow of information influencing several companies in a group.
TYPES AND WAYS OF WORKERS' INVOLVEMENT IN DECISION-MAKING PROCESSES
Mr Hiršl informed the participants of the legal framework of Works Council, trade unions and workers' involvement in management processes. The right of employees to be involved in employers' management decisions is covered by normative regulation of the European Union law in several directives, and in the Slovenian legal system by the Worker Participation in Management Act dating back to 1993. Workers' involvement in management is realized at different levels: participation in the Works Council, participation in supervisory bodies and participation in governing bodies. Ways of including workers range from disseminating information, obtaining advice and participation in decision-making to supervision and management. Involving workers in decision-making processes can be of great help to employers.
Further, Mr Hiršl clarified the decision-making process from the point of reacting to change and the actual conditions, where decision making equals assuming responsibility - management, for example, is responsible to the owners for the results of managing the equity they were entrusted, and employee representatives are responsible to employees for representing their interests (however, employee representatives are mainly responsible in the 'moral' sense).
The competences of trade unions and their statutory regulations were presented by Mr Andrej Zorko from The Association of Free Trade Unions of Slovenia (ZSSS).
UNCLEAR DEFINITION OF WORKERS' INVOLVEMENT IN MANAGEMENT IN PARTNER COUNTRIES
As had been established at the kick off meeting of project partners, workers' involvement in decision-making processes is an area that remains differently regulated across participating countries.
The study visit was important in terms of understanding the activities and the main purpose of works councils, as the regulatory framework in participating project countries is relatively unspecific concerning the role of councils, or, in some cases, their role might not be defined at all by law. Hence the misunderstandings about the tasks of representatives in works councils and the resulting non-optimal cooperation in cases when cooperation is specified at all. Presented best practice examples offer project partners possible starting points for future normative regulation or the formation of standpoints.
PROJECT PARTNER MEETING
Project partners were given an overview of the results of research aimed at obtaining basic information such as: the existence of legal instruments, the level of workers' involvement in management, awareness and attitude of employers towards these issues and similar questions which could help assess the level of workers' involvement in management in participating countries. Conclusions were made about the finalization of the comparative report and national reports on the state of social dialogue at company level and on workers' involvement in decision-making processes. Finally, partners also discussed the possibility of organizing workshops for social partners, the interim report and the issuing of project publication.
The project WIM is co-funded by the European Commission.
Representatives of employers' organizations and companies from Slovenia, Macedonia and Montenegro participated in a study visit to Ljubljana on June 13-14th 2013 as part of the WIM project ('Workers' involvement for better and sustainable management in undertakings'). As conclusion of the visit, partners met to discuss and review current and upcoming project activities.
The purpose of the study visit was to exchange and convey best practice examples, knowledge and experience dealing with workers' involvement in decision-making processes to improve bipartite social dialogue at the sectoral and company levels.
PARTICIPANTS LEARNED ABOUT THE ACTIVITIES OF GORENJE d.d. WORKS COUNCIL
Mr Peter Kobal, who has been Chairman of the Works Council of Gorenje d.d. since 1997 and who was appointed member of the Supervisory Board of Gorenje in 1998, familiarized the study visit participants with practical tasks and activities carried out by Works Council, as well as its competences. He emphasized that the involvement of workers in decision-making processes can be of great help to employers. Also, workers' involvement can lead to better and more sustainable decisions.
Mr Kobal discussed both the role of the Management Board and the role of employers' representatives, emphasizing the added value of cooperation and balancing the interests of both sides in decision-making processes. Gorenje d.d. therefore offers a best practice example exceeding the regulatory requirements for involvement of employee representatives and their contribution in the management processes - the law provides only the minimum requirements which, without determined efforts from the management, usually create conflict rather than partnership. In short, the regulatory framework does not provide any added value to the previously adopted or planned managerial decisions. The added value of exemplary cooperation is revealed in positive managerial decisions which cannot be implemented by law, but rather have to be developed gradually, which naturally requires time.
The Gorenje Group is a leading European manufacturer of household appliances with over 60 years of experience. With transnationality being one of their clear priorities, the Group established a European Works Council in order to facilitate communication with Central Management where all important decisions are made. Central Management supplies the European Works Council with information on company operations affecting employees' interests and consults with the Council. Thus, an exchange of opinions and dialogue between the Management Board and employee representatives are ensured.
ADECCO H.R. AND THE EUROPEAN WORKS COUNCIL
The practical aspect of establishing the European Works Council was presented by Mr Damir Battisti of Adecco, the world's leading provider of HR solutions with branches in over 60 countries.
Mr Battisti explained the process of finalizing the European Works Council agreement for the Adecco Group. In the preamble, the agreement stresses the importance of European integration also on the level of connected companies. Later on, the role, competences, composition and operations of Adecco Group European Works Council are defined. The agreement precisely defines the number of employee representatives from different countries in the Council, but the manner of electing or appointing these representatives in respective countries is a matter to be agreed on by the management and representative trade unions in the company or elected employee representatives in the company. The European Works Council convenes twice a year for a two-day session. The matters relating to disseminating information and consulting at the European level mainly include: the economic and financial situation of the company as a whole, current production and sales figures, research and technological development strategies, production programs, rationalization, reorganization and restructuring, changes to production and work methods, reducing or transferring work and the closing of branches, takeovers, sales and mergers, decisions influencing employment, vocational training, employees' position and the working conditions for the employed.
Mr Anže Hiršl, independent legal adviser at ZDS, presented the legal framework of the European Works Council, particularly its establishing stages. He pointed out the possibility given to employers of initiating the establishment of a European Works Council, which also highlights the interest of companies in this issue. After all, the European Works Council is a possible tool for ensuring at least a minimum flow of information influencing several companies in a group.
TYPES AND WAYS OF WORKERS' INVOLVEMENT IN DECISION-MAKING PROCESSES
Mr Hiršl informed the participants of the legal framework of Works Council, trade unions and workers' involvement in management processes. The right of employees to be involved in employers' management decisions is covered by normative regulation of the European Union law in several directives, and in the Slovenian legal system by the Worker Participation in Management Act dating back to 1993. Workers' involvement in management is realized at different levels: participation in the Works Council, participation in supervisory bodies and participation in governing bodies. Ways of including workers range from disseminating information, obtaining advice and participation in decision-making to supervision and management. Involving workers in decision-making processes can be of great help to employers.
Further, Mr Hiršl clarified the decision-making process from the point of reacting to change and the actual conditions, where decision making equals assuming responsibility - management, for example, is responsible to the owners for the results of managing the equity they were entrusted, and employee representatives are responsible to employees for representing their interests (however, employee representatives are mainly responsible in the 'moral' sense).
The competences of trade unions and their statutory regulations were presented by Mr Andrej Zorko from The Association of Free Trade Unions of Slovenia (ZSSS).
UNCLEAR DEFINITION OF WORKERS' INVOLVEMENT IN MANAGEMENT IN PARTNER COUNTRIES
As had been established at the kick off meeting of project partners, workers' involvement in decision-making processes is an area that remains differently regulated across participating countries.
The study visit was important in terms of understanding the activities and the main purpose of works councils, as the regulatory framework in participating project countries is relatively unspecific concerning the role of councils, or, in some cases, their role might not be defined at all by law. Hence the misunderstandings about the tasks of representatives in works councils and the resulting non-optimal cooperation in cases when cooperation is specified at all. Presented best practice examples offer project partners possible starting points for future normative regulation or the formation of standpoints.
PROJECT PARTNER MEETING
Project partners were given an overview of the results of research aimed at obtaining basic information such as: the existence of legal instruments, the level of workers' involvement in management, awareness and attitude of employers towards these issues and similar questions which could help assess the level of workers' involvement in management in participating countries. Conclusions were made about the finalization of the comparative report and national reports on the state of social dialogue at company level and on workers' involvement in decision-making processes. Finally, partners also discussed the possibility of organizing workshops for social partners, the interim report and the issuing of project publication.
The project WIM is co-funded by the European Commission.