The European Cooperative Society (Involvement of Employees) Regulations 2006

Regulation 21 and paragraph 15 of Schedule 1

SCHEDULE 2 U.K. STANDARD RULES ON EMPLOYEE INVOLVEMENT

PART 1 U.K. COMPOSITION OF THE REPRESENTATIVE BODY

1.—(1) The management of the SCE shall arrange for the establishment of a representative body in accordance with the following provisions— U.K.

(a) the representative body shall be composed of employees of the SCE and its subsidiaries and establishments;

(b) the representative body shall be composed of one member for each 10% or fraction thereof of employees of the SCE, its subsidiaries and establishments employed for the time being in each EEA State;

(c) the members of the representative body shall be elected or appointed by the members of the special negotiating body or, in the absence thereof, by the employees; and

(d) the election or appointment shall be carried out by whatever method the special negotiating body decides which should seek to promote gender balance.

2.  Where its size so warrants, the representative body shall elect a select committee from among its members comprising at most three members. U.K.

3.  The representative body shall adopt rules of procedure. U.K.

4.  The representative body shall inform the competent organ of the SCE of the composition of the representative body and any changes in its composition. U.K.

5.—(1) Not later than four years after its establishment, the representative body shall decide whether to open negotiations with the competent organ of the SCE to reach an employee involvement agreement or whether the standard rules in Part 2 and, where applicable, Part 3 of this Schedule shall continue to apply. U.K.

(2) Where a decision is taken under sub-paragraph (1) to open negotiations, paragraphs 10 to 12 and paragraph 14 of Schedule 1 shall apply to the representative body as they apply to the special negotiating body.

PART 2 U.K. STANDARD RULES FOR INFORMATION AND CONSULTATION

6.—(1) The competence of the representative body shall be limited to questions which concern the SCE itself and any of its subsidiaries or establishments in another EEA State or which exceed the powers of the decision-making organ in a single EEA State. U.K.

(2) For information and consultation purposes, the competent organ of the SCE shall—

(a) prepare and provide to the representative body regular reports on the progress of the business of the SCE and the SCE's prospects;

(b) provide the representative body with the agenda for meetings of the administrative or, where appropriate, the management or supervisory organs and copies of all documents submitted to the general meeting of its members; and

(c) inform the representative body when there are exceptional circumstances affecting the employees' interests to a considerable extent, particularly in the event of relocations, transfers, the closure of establishments or undertakings or collective redundancies.

(3) The following provisions shall apply to the relationship between the competent organ and the representative body—

(a) The competent organ shall, if the representative body so desires, meet with that body, without prejudice to paragraph (b) below, at least once a year to discuss the reports referred to in sub-paragraph (2)(a). The meetings shall relate in particular to the structure, economic and financial situation, the probable development of business and of production and sales, the situation and probable trend of employment, investments and 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; collective redundancies; and initiatives with regard to corporate social responsibility;

(b) in the circumstances set out in sub-paragraph (2)(c), the representative body or, where it so decides (in particular, for reasons of urgency), any select committee, is entitled to meet the competent organ of the SCE or any more appropriate level of management within the SCE on request; and

(c) in the event of the competent organ not acting in accordance with the opinion expressed by the representative body, the two bodies shall meet again to seek agreement, if the representative body so wishes.

(4) In the circumstances set out in sub-paragraph (3)(b) above, if the select committee attends the meeting, any other members of the representative body who represent employees who are directly concerned by the measures being discussed also have the right to participate in the meeting.

(5) Before any meeting referred to in sub-paragraph (3), the members of the representative body or the select committee, as the case may be, shall be entitled to meet without the representatives of the competent organ being present.

(6) Without prejudice to regulations 26 and 27, the members of the representative body shall inform the employees' representatives or, if no such representatives exist, the employees of the SCE and its subsidiaries and establishments, of the content and outcome of the information and consultation procedures.

(7) The representative body and any select committee may be assisted by experts of its choice.

(8) The costs of the representative body shall be borne by the SCE which shall provide the members of that body with financial and material resources needed to enable them to perform their duties in an appropriate manner, including (unless agreed otherwise) the cost of organising meetings, providing interpretation facilities and accommodation and travelling expenses. However, where the representative body or the select committee is assisted by more than one expert the SCE is not required to pay the expenses of more than one of them.

PART 3 U.K. STANDARD RULES FOR PARTICIPATION

7.—(1) In the case of an SCE formed by conversion, if the rules of an EEA State relating to employee participation in the administrative or supervisory body applied before registration, all aspects of employee participation shall continue to apply to the SCE. Sub-paragraph (3) shall apply with any necessary modifications to that end. U.K.

(2) In the case where an SCE is formed other than by conversion and where the employees or the representatives of the employees of at least one of the participating legal entities had participation, the representative body shall have the right to elect, appoint, recommend or oppose the appointment of a number of members of the administrative or supervisory body of the SCE, such number to be equal to the number in the participating legal entity which had the highest proportion of such members.

(3) The following provisions shall apply to the allocation of seats within and membership of the administration or supervisory body—

(a) subject to paragraph (b), the representative body shall, taking into account the proportion of employees of the SCE employed in each EEA State, decide on the allocation of seats within the administrative or supervisory body, or on the means by which the SCE's employees may recommend or oppose the appointment of the members of these bodies;

(b) in making the decision set out in paragraph (a), if the employees of one or more EEA State are not included by virtue of the proportional criterion set out in that paragraph, the representative body shall appoint a member from one of those EEA States including one from the EEA State in which the SCE is registered, if appropriate;

(c) every member of the administrative body or, where appropriate, the supervisory body of the SCE who has been elected, appointed or recommended by the representative body or the employees shall be a full member with the same rights and obligations as the members representing the members of the SCE including the right to vote.

(4) In the case where regulation 21(5) or paragraph 15(4) of Schedule 1 applies, the rules for employees or employees' representatives participating in general meetings or, if applicable, section or sectorial meeting, shall be determined—

(a) by agreement between the representative body and the competent organ of the SCE; or

(b) if no such agreement is reached, by the rules applicable to the participating cooperative governed by such a system which has the highest proportion of participation, within the meaning of regulation 3, in force in the participating cooperatives concerned before registration of the SCE.