BASF Signs Accord for Pan-European Worker Representation on Company Panels

Last month, full worker participation in a future, pan-European company became a reality with agreement by chemicals firm BASF that creates a European Works Council, and includes workers' representatives on its supervisory board.

The employee participation agreement was signed by management and a special negotiating body representing BASF workers in Ludwigshafen, Germany. It is a final step in BASF converting from a German company, or Aktiengesselschaft (AG), to a European company, or Societas Europaea (SE). That transformation is expected to occur early in 2008.

Following that, BASF's supervisory board will be reduced from 20 to 12 members, with six of those to be workers' representatives. The newly-formed European Works Council will consist of 23 members from 12 European nations, of which eight will be from Germany.

The agreement strengthens the participation of all European employees in the company. BASF said the accord will improve corporate governance. Legally, the new employee participation agreement will govern cross-border information and make sure that the consultation process involves workers.

That social partnership process will convene three times yearly. In addition, the European Mine, Chemical, and Energy Workers' Federation (EMCEF) will hold the right to be present during all European Works Council meetings, as well as at the SE supervisory board meetings. ICEM German affiliate IGBCE called the BASF negotiated pact a yardstick by which to measure other companies seeking to become European entities.