The French government claimed a victory today after EU ministers agreed in principle on stringent new pan-European worker consultation laws, but British business baulked at the rules, warning they were a step in the wrong direction.
The proposed EU worker consultation law, dubbed the "Vilvorde" directive after the Belgium factory axed by former state-owned French car maker Renault in 1997, which sparked demands for common rules, was given the green light by EU employment and social affairs ministers last night.
If approved by the 15 member states at the next meeting of the Council of Ministers, the law would require EU companies to inform employees about any decision affecting their jobs, notably those which could lead to redundancies.
Firms employing 50 workers or more would also have to inform employees of their financial and economic situation.
French Social Affairs Minister Ms Elisabeth Guigou hailed the agreement as "a great step forward".
The directive would require all EU countries, including those with no such laws at present, such as Britain and Ireland, to ensure that companies consult workers before taking any decision which might lead to redundancies, she said. It would also apply to countries joining the EU.
Worker consultation laws already exist in France, but had been opposed by Britain and Ireland, where flexible labour markets help attract large flows of foreign direction investment.
British companies in particular have been lobbying hard for less labour market red tape and the compromise by the Labour government drew an angry response from British business leaders.
The Confederation of British Industry, Britain's top business grouping, said it was "deeply disappointed" by the decision, in a statement released in London.
Britain and Ireland would however be given seven years to implement certain aspects of the new directive, if it becomes EU law, against a deadline of three years for other EU states.
AFP