EU Funding

The EU makes project resources available to European Works Councils every year. We help with the application process.

A total of 7.7 million Euros is available every year. The relevant budget line of the European Parliament was set up as early as 1992 under the index number 04.03.03.03 in order to promote meetings of employee representatives on a European level. Over the years its emphasis has changed: along with European Works Councils, employee representatives in European corporations also form part of the target group. The European trade union federations are also entitled to apply and use the budget for sector related activities. Competition in the approval process is considerable: only one in two applications are approved by the EU.

Let us use the example of Continental: the transformation of the German tyre manufacturer into a leading technology company in automotive production cost lots of jobs. Following factory closures in Austria and Ireland the idea of a European project developed. We advised the European Works Council in the acquisition of the EU subsidy and the arrangement of a series of events and seminars. The focus was on the search for a common strategy against competition between locations and social dumping.

In principle only projects which show a recognisable European dimension are encouraged. Refinancing of regular tasks (e.g. annual meeting of an EWC with the employer) is not possible through the EU. Initiatives in which project partners from several countries convene under the leadership of the applicant and confirm their participation through a “Letter of Commitment” have a high chance of success. Along with training seminars and databases, initiatives which aim for the introduction of a corporate social responsibility (“Social Charter”) or which contribute to gender equality in the representation of interests also have priority.  Projects which are developed jointly by employee representatives and company management have particularly good chances of approval. All proposals can be subsidised by the EU up to a maximum of 80% of the total cost. The applicants are responsible for raising and furnishing proof of their own respective share.

Following the annual call for bids in February, applications can be submitted to the EU Commission in both April and September. In the distribution of the resources to the individual EU countries, good lobbying is worthwhile. While resources are hardly accessed by the Scandinavian countries for example, Italy has a place right at the top. Germany ranks somewhere in the middle of the table although there are seven times more EWC enabled companies registered here than in Italy. There is a correspondingly large amount of criticism of the lack of transparency in the practice of awarding on the part of the Commission.

The high level of bureaucratic requirements makes up the greatest obstacle in the preparation of a bid. Around 20 different documents, forms and data records have to be presented to the Commission. The complexity has increased year by year and this has led to a situation where applications are largely submitted from companies which have sufficient human resources available for preparing an application due to their size. Employees from small companies by contrast usually fall at the hurdles placed in their path by the EU Commission.

In spite of all the difficulties the path to Brussels is worthwhile. Thanks to our experience with applications for companies such as Continental, TUI or Triumph International we know which pitfalls can be avoided. We would be happy to support your EWC.