Council of employees – is it a relic of the past, or is it the future of the Polish labour market? Workers' councils inactive play a key function in social dialog in Western European countries specified as Germany and the Netherlands. There, worker councils actively participate in company management and employees have a real impact on business decisions.
In Poland, despite more than eighteen years of past of this solution, staff councils inactive stay a marginal institution whose possible has not been full exploited.
In this article, I will examine what employees' councils are, what chances of effective action in Poland and what obstacles they face in their path.
What are worker councils?
Let's start with the basics. Workers' councils are institutions representing employees in company decision-making processes. Their task is to take care of the interests of the crew, as well as to cooperate with the company's management in matters concerning work organisation, employment conditions and even company restructuring.
Importantly, worker councils are not identical to trade unions. Unlike unions that focus mainly on collective bargaining and the protection of workers' rights, the aim of worker councils is to conduct dialog in the company and gain cognition on key topics.
In Poland, in accordance with the Act of 2006 on informing and consulting employees, worker councils may be appointed in enterprises employing at least 50 employees.
The rules for their operation derive from the EU Directive 2002/14/EC aimed at establishing a common framework for consultation between employers and workers. This directive was intended to let better information to flow in companies and to prevent conflicts between parties. However, despite clear rules, the Polish strategy of worker councils does not work as we might expect.
History of worker councils in Poland – hard beginnings
In Poland, worker councils were introduced as a consequence to EU requirements, but they faced many problems from the beginning. In 2006, erstwhile the regulations were implemented, there were many enthusiastic voices about the anticipation of real influence of employees on company management. But reality proved more complicated. study "10 years of worker council in Poland", by the Institute for civilian Affairs, worker councils were treated from the beginning by many companies with a large reserve and their implementation encountered opposition of both employers and... trade unions [1] .
Staff councils, which were to be an innovative tool for shaping citizenship in the workplace, were treated from the very beginning as an institution imposed and left to itself.
Politicians of all options, alternatively of utilizing the possible of councils to transform the employer-employee relationship, are limited to formally implementing the provisions required by Directive 2002/14/EC of the European Parliament. Workers' councils were implemented without real support – there were no educational, promotional and legislative measures that could breathe life into them and make them effective in action. Without appropriate background, the improvement of these councils remained mostly incomplete and lacking the impulse to function effectively.
The trade unions, although they could cooperate with the councils, besides saw no possible in them. The deficiency of protection of the council's initiators and insufficient information skills made the councils seen as an inefficient tool. The provisions, specified as Article 13 of the Staff Councils Act, were enigmatically recorded, which allowed employers to interpret their duties in a minimal way. In practice, this meant that the councils had no access to any applicable information another than those that were publically available, for example in reports published in the KRS [2]. Employers' reluctance to supply detailed information to staff councils is due to concerns about increased control. Many companies keep that only a minimum of cognition that is already available to the public is required for advice, which limits the anticipation of real intervention in company management. Workers' councils, alternatively of being a platform for cooperation, frequently become just a symbolic institution, without real influence on company decisions.
Why didn't the unions want worker advice?
Paradoxically, 1 of the opponents of worker councils in Poland proved to be trade unions. In theory, both of these institutions could work for workers, but the trade unions feared that worker councils would compete and weaken their position in companies. The councils, which were to be independent bodies selected by employees, were in fact frequently linked to local trade union structures, leading to tensions and competency disputes.
Furthermore, as the study shows, trade unions saw worker councils as a threat to their monopoly on worker representation.
They feared that advice, having access to information about the company, could gain an advantage in negotiations with employers. As a result, in many cases trade unions have blocked the formation of worker councils or tried to limit their competence [3].
Harmonic cooperation between labour councils and trade unions – is that possible?
Workers' councils and trade unions have different fields of action and competence, should not be seen as competitive. On the contrary, may complement each other.
Staff councils have access to applicable information on the state of the company, and these data may be the basis for trade union intervention, peculiarly in the case of protection of workers' interests.
Harmonic cooperation between the 2 actors allows for strengthening the position of the crew and prevents manipulation by the employer. Thanks to the cooperation of trade unions with worker councils, interior conflicts and provocations from the board can be avoided. This joint action not only protects the interests of workers, but besides strengthens the stableness of the company.
Low unionisation and its consequences
Poland has been struggling with a low worker union for years. Only nearly six out of 1 100 (5.5%) adult Poles presently declare membership of trade unions [4]. Since 2006, the percent of trade union members among all adult Poles has remained similar. However, this rate is lower than before: in 1991, union membership declared almost 1 in 5 adults (19%) [5]. Over the next fewer years, this figure has almost halved, and in the 21st century the percent of people belonging to this kind of organisation did not exceed 9%. In Poland, most trade unionists belong to a large-scale organization. Almost 3 quarters (74%) of employees who declare membership of trade unions are employed in institutions, offices or establishments wholly state, local or public, and only 18% work in private companies [6]. Therefore, The vast majority of employees, especially in tiny and medium-sized companies, have no representation, which translates into their marginalisation in decision-making processes.
In addition, trade unions are undergoing a gradual ageing process. Older workers declare membership of trade unions more frequently than young people. A peculiarly evidence advanced percent of those declaring membership of the union occurs among employed workers aged 55 to 64 (achieving as much as 29% in this age group). all 20 members of the union are already retired. Moreover, 60% of the trade union surveyed were over 45 years old. As a result, the average trade union age is presently 47 years [7].
This data raises serious concerns about the future of the workers' movement.
With the current average age and the absence of young members, the majority of current trade unionists will be retired for 2 decades, which will importantly reduce the already low number of trade union members in the country. Of course, it delights that older, experienced members proceed to actively support union activities, and intergenerational cooperation allows them to gain valuable knowledge. However, we can no longer overlook the problem of the generation gap – we deficiency continuity that would guarantee the sustainability and improvement of trade unions for the future. Not to mention that 20 years from now there will be no 1 to pass on the union ethos and teach the union activities to young generations [8]. It is possible that worker councils are any way to affect young people in the conflict for workers' rights.
Problems with the creation of worker councils
One of the biggest problems related to worker councils in Poland is the 10% threshold of support signatures – in order to establish the council, at least 10% of the employees of the company must apply for its creation.
In practice, this means that even a fewer 100 people are needed in large enterprises to establish a council. By comparison, in Germany, it is adequate that in a company employing more than 200 employees, only 5 people study a willingness to set up a council to begin the procedure of creating it.
In Poland, this threshold is so advanced that many employees are afraid to engage in the activities of the council, fearing the consequences of the employer. The study of the Institute of civilian Affairs cited earlier shows that employers frequently effort to discourage workers from setting up councils, utilizing different force tools, from manipulating information to direct dismissal threats, as is the case if they do not engage in union activities [9].
Another problem is the deficiency of clear rules on the financing of staff councils. Currently, the costs of their operation are borne by the employer, which in practice means that he decides which actions of the council to finance and which do not. The deficiency of an independent staff council budget makes it impossible for them to act independently.
German Betriebsrat – a model for Poland?
To realize the benefits of well-functioning worker advice, it is worth looking at the German model Betriebsrat. In Germany, worker councils (plant councils) are powerfully rooted in the legal strategy and have extended competence. Employees can influence many decisions in the company, including issues related to reorganisation, working conditions or company improvement strategy. Importantly, in Germany, the employer cannot take crucial decisions regarding the company without prior consultation with the board.
Betriebsrat has the right to receive detailed information about the economical situation of the company, which allows the board to have a real impact on the decisions of the board. The Council shall besides have the right to usage independent experts and their members shall be protected against dismissal [10].
This strategy not only strengthens the position of workers, but besides contributes to greater stableness of companies – investigation shows that companies with labour councils are better able to cope with restructuring and are little susceptible to social conflicts. As in the case of trade unions. investigation clearly shows that the best functioning economies in the planet are characterised by a advanced level of unionisation – that is, a advanced percent of workers associated with trade unions, well-functioning collective agreements or a advanced level of cooperation between workers and entrepreneurs [11]. Workplaces with strong union representation have a lower turnover of employees than those in which there is no union activity [12].
Could specified a model work in Poland? According to many experts, yes. However, for this to be possible, changes in Polish government are necessary. In the context of worker councils, the 10% threshold should be reduced and councils should have access to independent backing and experts. It is besides crucial to guarantee full protection of members of councils from dismissal.
Works councils in Germany are peculiarly strong in sectors of strategical importance to the economy. Examples include municipal service workers specified as waste management, sewerage, energy and the mining sector. It is there that plant councils represent over 80% of employees. By comparison, in the financial and insurance sectors, the board represents about 75% of employees, while in the processing and production industries – around 70%. It is besides worth mentioning that almost half of those employed in the transport, education, wellness and communication sectors have their representatives in the works councils [13].
Such broad representation of employees in different industries makes the functioning of works councils in Germany a common phenomenon. Data from 2014 show that 43% of private sector employees in western Germany and 33% in east regions were represented by councils at the level of their establishments. This level of participation demonstrates that social dialogue, collective management and co-decision on jobs is the foundation of the German economy [14].
The German company board strategy has developed solid foundations that are based on various forms of collective management.
This includes collective agreements, dialog between employees and employers and the activity of works councils, which represent 58.5% of all private sector employees. The example of Germany shows that an effective governance strategy based on consensus and discussion can be a key component of economical stableness and social security.
Unfortunately, there are no shortages of failures of worker councils. In many companies, staff councils are treated as "necessary evil" and their members are marginalised. deficiency of support from employers and limited competence make councils frequently incapable to act effectively. The study of the Institute of civilian Affairs shows that in any cases employers even sabotage the activities of councils, e.g. by delaying elections or not providing full information.
Council of employees – tool for employees, but besides for companies
Can worker advice besides benefit employers? Although at first glance they seem to be a tool that only strengthens the position of employees, in fact they can besides benefit companies.
In countries where worker councils have been operating for years, companies are better at dealing with crises, and relations between employers and workers are more partnered.
Councils can act as a buffer in hard situations specified as restructuring or organisational change, helping to alleviate tensions and avoid conflicts. 1 example is the situation in which the company plans restructuring, which may lead to redundancies. In the conventional model, workers learn about last-minute changes, leading to protests and strong conflict. However, if there is simply a staff council active in the decision-making process, it is possible to affect workers in negotiations and find compromise solutions [15].
Conclusions: What about the advice of employees in Poland?
Workers' councils are institutions with large possible to improve the quality of employment relations in Poland. They enable workers to have a real impact on workplace decisions, fostering common trust between the squad and the employer. However, in order to be effective, changes in Polish law and changes in employers' approach are necessary. As the reports show, the Polish management strategy is mostly authoritarian, and corporate boards are frequently unwilling to engage in open dialog with employees.
The introduction of a more partnership relation that can be observed in Germany could importantly improve the quality of work and the stableness of employment. Poland has a long way to go to make workers' councils, but if appropriate steps are taken, councils can become an crucial component of social dialog in the country.
Areas relating to worker participation and participation in management are presently the least developed, indicating a clear economical democracy deficit.
Strengthening mechanisms specified as collective agreements, social dialog and the creation of labour councils is essential for sustainable economical and social development. Social dialog is the foundation of democratic relationships at work – it creates stable, fair links in the labour marketplace and allows for constructive resolution of problems and the co-creation of social policies. This benefits both the labour side and companies and, consequently, the full society. However, effective dialog requires common respect and trust. The employees' councils are an crucial component of it, offering employees a real impact on the management of the company and strengthening their position in the organisational structure.
In order to get closer to the level of social dialog that is the norm in Germany, Poland must introduce fundamental changes. First of all, a improvement of the Staff Councils Act, which will extend their competences, reduce the thresholds needed to establish them and supply better legal protection.
Footnotes:
[1] study of the Institute of civilian Affairs, 10 years of advice from employees in Poland. What's next?, 2016, p. 13.
[2] ISO study 10 years of advice from employees in Poland. What's next?, 2016, p. 14
[3] ISO study 10 years of advice from employees in Poland. What's next?, 2016, p. 17
[4] Test Trade unions in PolandCBOS 2021, p. 1
[5] Test Trade unions in PolandCBOS 2021, p. 2
[6] Test Trade unions in PolandCBOS 2021, p. 2-3
[7] Test Trade unions in PolandCBOS 2021, p. 4
[8] Regeneration! Society, Collegium Civitas, 2023, p. 168
[9] ISO study 10 years of advice from employees in Poland. What's next? 2016, p. 23
[10] ISO study 10 years of advice from employees in Poland. What's next? 2016, p. 49
[11] P. Auer, In Search of the Optimal Labour marketplace Policies, global Labour Organization, 2006
[12] R. Freedman, J. L. Medoff, What Do Unions Do?, Basic Books, fresh York 1984. Ch. Doucouliagos, P. Laroche, What Do Unions Do to Productivity? A Meta-Analysis, Industrial Relations 2003, No 42
[13] ISO study 10 years of advice from employees in Poland. What's next? 2016, p. 46
[14] ISO study 10 years of advice from employees in Poland. What's next? 2016, p. 46
[15] T. Döring, Macht der Betriebsräte. Wer sind die neben Osterloh? Betriebe mit Betriebsrat produktiver
The task was prepared as part of the improvement of the Centre for the Support of Councils of Workers co-financed by the National Institute of Freedom Centre for the improvement of civilian Society under the Government Programme for the improvement of Advisory Organisations for the period 2022–2033.
