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A EWC agreement was concluded for Verallia, on 23 September 2016. The company has 10,000 employees worldwide (including 6,000 in Europe) and belonged until October 2015, to the French conglomerate Saint-Gobain, one of the world's oldest industrial enterprises. It was founded in 1665 as a glass manufacturer to equip the hall of mirrors in the Versailles Palace.
Saint-Gobain has already a "Convention for European Social Dialogue" since 1988 and thereby belongs to the pioneers of EWC history. The EWC agreement continues to this day on a "voluntary" basis (see report in EWC News 2/2009). The situation is different for Verallia, where a full-fledged European works council was completely renegotiated based on the regulations of the new EU Directive, and following the official path, by a Special Negotiating Body.
The EWC is composed of at least one representative per country, and additional seats are allotted according to the size of the workforce. No upper limit has been set since the membership is dynamically increased in the case of company acquisitions. The steering committee which is made up of five members, holds discussions between the annual EWC meetings and is consulted in exceptional circumstances. It can involve other delegates, who are directly concerned by any planned measures. As is common practice in France, there are extensive provisions for the assistance of experts including an annual budget of 30,000 €.
Prior to the sale of the company to a US financial investor there had been strikes to obtain financial compensation at the seven French sites. In France there is a legal right to profit-sharing for employees (see report in EWC News 2/2016). Since Verallia was sold through an LBO (leveraged buyout), the workforce loses its previous profit-sharing of 30% for the next seven years. Explanation: following an LBO the cost of financing the company acquisition has to be recouped.
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