As companies became more transnational, the local information and consultation bodies (such as works councils) lacked a direct link to the level on which the real decisions are taken.
As EWCs bring employee representatives of all over Europe together with the European management, they have an opportunity to be informed and consulted on the transnational companies strategy and status.
In the end, the EWC Recast Directive adopted in 2009 contained some important changes regarding the definitions of information, consultation and transnational issues, included a right to training for employee representative and provided some more requirements for EWC agreements.
[3] European Works Councils can be established in multinationals operative in more than two EEA countries if they pass a certain threshold of number of employees.
If a company passes these thresholds, an initiative can be taken by the employer or the employees to establish a European Works Council.