With the growth of trade union movements around the world, there was a strong demand for employee rights. One of the most prominent demands was the right of employees to participate in decision making. Such demands were particularly pronounced in cases where the decision involved the interest of employees in an organization.

Initially, businessmen and employers were reluctant to allow such rights. However, with modern democratic trends, it was only a matter of time before conceptual changes took place. With changing views and concepts regarding the employer-employee relationship, the concept of the master-servant relationship was replaced by peer-based businesses. The European Works Council is a branch that demands the rights of employees to participate in decision-making.

The Council of the European Union approved a directive on September 22, 1994 that marked the establishment of the European Works Council. Named EWC in short, it was used to inform and consult employees in companies operating at the European Union level.

The directive established the procedure to inform and consult the employees of the companies that would operate at the European Union level. The EWC directive today applies to those companies that have at least 1000 employees within the European Union. Such companies must also have at least 150 employees in each of the two member states of the Union.

The creation of the council was basically a response to the increasing process of transnational restructuring triggered by the Single European Act. Deputy EWC representatives of workers from all European countries in large multinational companies. Furthermore, they also ensure that workers coming from divergent countries are told the same about transnational plans and policies.

The advantage of being part of the EWC is that the interested workers are in direct communication with the top management of said transnational companies. By providing workers’ representatives working in various companies in different countries of Europe, they allow them to get a complete idea about transnational plans and policies.

Workers are allowed to be represented both in unions and in national work councils which give them the opportunity to interact with each other. As a result, it develops a common European response to transnational employee-related schemes.