Competence.

1. F41[(1) The competence of the European Works Council (in this Schedule referred to as ‘the Council’) shall be determined in accordance with section 8(5), whether the central management is located within the Community or elsewhere.]

F41[(2) The information to the Council shall relate in particular to the structure, economic and financial situation, probable development and production and sales of the Community-scale undertaking or group of undertakings.]

F42[(3) The information to and consultation with the Council shall relate in particular to—

(a) the situation and probable trend of employment,

(b) investments, and

(c) substantial changes concerning organisation, introduction of new working methods or production processes, transfers of production, mergers, cut-backs or closures of undertakings, establishments or important parts thereof, and collective redundancies.

(4) The consultation shall be conducted in such a way that the employees’ representatives can meet with the central management and obtain a response, and the reasons for that response, to any opinion they might express.]

Composition.

2. (1) The Council shall be composed of employees’ representatives who shall be employees of the Community-scale undertaking or Community-scale group of undertakings.

(2) The representatives of employees based in the State shall be elected in accordance with the First Schedule.

(3) In the absence of elections, the representatives shall be appointed.

(4) F41[The members of the Council shall be elected or appointed in proportion to the number of employees employed in each Member State by the Community-scale undertaking or Community-scale group of undertakings, by allocating in respect of each Member State one seat per portion of employees employed in that Member State amounting to 10 per cent, or a fraction thereof, of the number of employees employed in all the Member States taken together.]

F42[(5) To ensure that it can coordinate its activities, the Council shall elect a select committee from among its members, comprising at most five members, which must benefit from conditions enabling it to exercise its activities on a regular basis.

(6) The Council shall, as soon as practicable after the election or appointment of its members, inform central management, or such other level of management as the central management thinks more appropriate, of the composition of the Council.]

Procedure.

3. The Council shall adopt its own rules of procedure subject to the following:

(a) the arrangements for the meetings of the Council shall be agreed by the central management in consultation with employees or their representatives but the management may not unreasonably withhold consent to proposals made by employees or their representatives;

(b) the minutes of the Council meetings shall be approved by both management and employees’ representatives to the Council;

(c) before any meeting with the central management, the Council or a select committee, where necessary enlarged in accordance with paragraph 5 (5), shall be entitled to meet without the management concerned being present;

(d) F43[…]

(e) the Council or the select committee may be assisted by such experts of its choice as are necessary for it to carry out its task.

Election or appointment of members.

4. F43[…]

Functions.

5. (1) The Council shall have the right to meet with the central management once a year, to be informed and consulted, on the basis of a report drawn up by the central management, on the progress of the business of the Community-scale undertaking or Community-scale group of undertakings and its prospects, and local managements shall be informed accordingly.

(2) F43[…]

(3) Where there are exceptional circumstances F42[or decisions] affecting the employees interests to a considerable extent, particularly in the event of relocation, the closure of establishments or undertakings or collective redundancies, a select committee or, where no such committee exists, the Council, shall have the right to be informed and the right to meet, at its request, the central management or such other level of management as the central management thinks more appropriate and advises the Council, so as to be informed and consulted F43[…].

(4) For the purposes of subparagraph (3), collective redundancies are those which concern a significant number of employees in relation to the size of the Community-scale undertaking, the establishment, the Community-scale group of undertakings or the undertaking which is a member or part of the Community-scale group of undertakings, in which the collective redundancy is taking place.

(5) Those members of the Council who have been elected or appointed from the establishments or undertakings which are directly concerned with the F41[circumstances or decisions] referred to in subparagraph (3) shall also have the right to participate F41[where a meeting is organised] with the select committee.

(6) The information and consultation meeting referred to in subparagraph (3) shall take place as soon as possible after any request to meet the central management, on the basis of a report prepared by the central management F42[or any other appropriate level of management of the Community-scale undertaking or group of undertakings], on which an opinion may be delivered at the end of the meeting or within a reasonable time.

(7) The meeting shall not affect the prerogatives of the central management.

F42[(8) The information and consultation procedures provided for in the above circumstances shall be carried out without prejudice to sections 8(1) and (4) and section 15.]

Expenses.

6. (1) The operating expenses of the Council, including a select committee where one is established, shall be borne by the central management.

(2) The central management concerned shall provide the members of the Council with such financial and other resources as are necessary to enable them to perform their duties in an appropriate manner.

(3) In particular, the cost of ongoing meetings and arranging for interpretation facilities and the accommodation and travelling expenses of members of the Council and its select committee shall be met by the central management unless otherwise agreed.

(4) The funding of experts by the central management shall be limited to funding the equivalent of one expert per meeting.

Miscellaneous.

7. (1) Four years after the establishment of the Council it shall examine whether to open negotiations for the conclusion of an agreement referred to in section 11 (1) or to continue to apply the requirements adopted in accordance with this Schedule.

(2) Sections 11 and 12, with any necessary modifications, shall apply if a decision has been taken to negotiate an agreement referred to in section 11 (1), in which case “Special Negotiating Body” in those sections shall be read as “European Works Council”.