This week's guest column from FTdynamo un-ashamedly asks what's so wrong with the recently passed EU Directive on Consultation?
A minor management earthquake rumbled through the European Union this month, but thankfully no-one was hurt. The EU Directive on Consultation has finally been passed, with the UK falling into line after years of opposition. The 'subsidiarity' argument - with the UK and other states, most notably Germany, claiming that individual nations should be allowed to draw up their own legislation - has been dropped. The single European market will now be home to the same consultation process in every member country.
The basics of the directive are as follows. Consultation with the workforce on major business decisions will be compulsory for firms employing more than 150 people, with this requirement being phased in after three years. After a further two years the directive will also apply to those with 100 or more staff. After seven years it will affect businesses with 50 or more workers, while firms employing fewer than 50 people will remain exempt.
