EP debates Takeover Bids Directive
The implementation of the Takeover Bids Directive was discussed again in the EP committee on legal affairs on 18 December 2012.
The debate can be followed here, starting shortly before 10am.
Based on its interpretation of an External Study on the implementation of the Directive, the Commission has taken the line that the Directive is for the most part functioning satisfactorally, and only needs minor adjustment. The political consensus seems to be that this is not the appropriate time to revise the directive, given the lack of experience with "normal" functioning of the directive, due to the financial crisis. Evelyn Regner in the debate stresses that provisions regulating worker rights during the takeover bid process are relatively weak and should be closely examined. The section of the EP Draft Report dealing with employee rights is as follows:
Rights of employees in a takeover situation
17. Underlines that the Directive foresees that employees are provided with information, in particular with regard to the offeror’s intentions on the future of the target company and the future plans concerning jobs, including any material changes to employment conditions;
18. Notices; however, with concern the dissatisfaction of employees’ representatives expressed in the External Study when it comes to the protection of employees’ rights, and calls on the Commission to enhance the dialogue with the employee representatives on how pressing issues can be better tackled; insists that the relevant provisions of the Directive on the right to be informed on time are to be effectively applied and, where necessary, properly enforced;
The Draft Resolution (from 6 December 2012) is available here:
The Commission website with documents pertaining to the Study and Communication are available here: