Fears about the impact of the new EU Works Council Directive on small companies are unfounded, according to the senior European Commission official involved. The director general for employment and social affairs Ms Odile Quentin says only 3 per cent of Irish companies would be affected by the new directive, although these employ 60 per cent of the workforce.

She also says a major new green paper on corporate responsibility will be issued shortly. This will seek to promote quality of life in the workplace including: upskilling of employees; measures to integrate disadvantaged groups into the workforce; and gender equality.

"Most small companies will not be affected because they employ under 50 people and the large multinational companies are already covered by the existing consultation directive," she said. Ms Quentin was speaking ahead of today's 2001 Conference of European Human Resource Directors in Loughlinstown, Co Dublin.

The new European Works Council Directive allows member-states up to four years to put in place consultation procedures. When the first European Works Council Directive for larger companies - those employing more than 1,000 people with at least 150 employees in plants located in two or more member-states - was introduced it made provision for voluntary agreements to be reached at local level.

Ms Quentin said the new directive was a very important step forward for social Europe and she was pleased it was the subject of unanimous agreement.