8.—(1) In order to improve the right of employees in Community-scale undertakings and Community-scale groups of undertakings to be informed and consulted, a European Works Council or arrangements for the information and consultation of employees shall be established in every such undertaking and group of undertakings in the manner and under terms, and with the effects, laid down in this Act.

(2) Where a Community-scale group of undertakings consists of one or more undertakings or groups of undertakings which in themselves are Community-scale undertakings or Community-scale groups of undertakings and the employees or their representatives request the establishment of a European Works Council or arrangements for the information and consultation of employees, the European Works Council or, where those arrangements require its establishment, a European Employees’ Forum shall be established at the level of the group, unless an agreement referred to in section 11 (1) provides otherwise.

(3) Unless a wider application is provided for in an agreement referred to in section 11 (1), the powers and competence of or in relation to an arrangement for the information and consultation of employees (including a European Employees’ Forum or an information and consultation procedure), or of a European Works Council established pursuant to this Act, shall—

(a) in the case of a Community-scale undertaking, cover all the establishments; and

(b) in the case of a Community-scale group of undertakings, cover all group undertakings,

located within the Member States.

F20[(4) The arrangements for informing and consulting employees shall be defined and implemented in such a way as to ensure their effectiveness and to enable the undertaking or group of undertakings to take decisions effectively.

(5) Information to, and consultation with, employees must occur at the relevant level of management and representation, according to the subject under discussion and for that purpose, the competence of the European Works Council or European Employees’ Forum and the scope of the information and consultation procedure for employees governed by this Act shall be limited to transnational issues.

(6) For the purposes of this Act, matters shall be considered transnational where they concern—

(a) the Community-scale undertaking or Community-scale group of undertakings as a whole, or

(b) at least two undertakings or establishments of the undertaking or group situated in two different Member States.]