Annex 1 — SUBSIDIARY REQUIREMENTS

Annex I to Directive 2009/38/EC is amended as follows: (1) point 1 is amended as follows: (a) the introductory wording is replaced by the following: 1. In order to achieve the objective set out in Article 1(1) and in the cases provided for in Article 7(1) and Article 14a, the establishment, composition and competence of a European Works Council shall be governed by the following rules:; (b) in point (a), the second and third paragraphs are replaced by the following: The information of the European Works Council on transnational matters shall relate in particular to the structure, economic and financial situation, probable development and production and sales of the Community-scale undertaking or group of undertakings. The information and consultation of the European Works Council shall relate in particular to the situation and probable trend of employment, investments, skills and training policies, the anticipation of change and the management of restructuring processes including those linked to the green and digital transitions, substantial changes concerning working conditions, in particular to work organisation or contractual relations, the introduction of new working methods or production processes, as well as to transfers of production, mergers, cut-backs or closures of undertakings, establishments or important parts thereof, and collective redundancies, including in controlled undertakings. The consultation shall be conducted in such a way that the employees’ representatives can meet with central management or any more appropriate level of management. The employees’ representatives shall be entitled to a reasoned written response to any opinion they might express prior to the adoption of the decision on the measures in question, provided their opinion was expressed within a reasonable time; ; (c) in point (b), the following paragraph is inserted after the first paragraph: In doing so and to the extent possible women and men shall each comprise at least 40 % of European Works Council members and of select committee members. Failure to achieve the objective of gender-balance shall not prevent the creation of the European Works Council. If the objective of gender balance is not achieved, the European Works Council shall explain, in writing, the reasons to the workers.; (2) point 2 is replaced by the following: 2. The European Works Council shall have the right to meet in person with central management at least twice a year to be informed and consulted, on the basis of a report drawn up by central management, on the progress of the business of the Community-scale undertaking or Community-scale group of undertakings and its prospects. The local managements shall be informed accordingly. In exceptional cases, digital means of communication and coordination may be used to hold such ordinary meetings, when appropriate and agreed upon and while ensuring meaningful information and consultation.; (3) point 3 is amended as follows: (a) the first and second paragraphs are replaced by the following: 3. Where there are exceptional circumstances or decisions which are reasonably to be expected to affect the employees’ interests to a considerable extent and urgency does not allow for information or consultation to take place at the following scheduled European Works Council meeting, particularly in the event of relocations, the closure of establishments or undertakings or collective redundancies, the select committee or, where no such committee exists, the European Works Council, shall have the right to be informed in a timely manner. It shall have the right to meet, at its request, central management, or any other more appropriate level of management within the Community-scale undertaking or group of undertakings having its own powers of decision, in order to be informed and consulted. Those members of the European Works Council who have been elected or appointed by the establishments and/or undertakings which are directly concerned or can reasonably be expected to be affected by the circumstances or decisions in question shall also have the right to participate where a meeting is organised with the select committee.; (b) the fifth paragraph is replaced by the following: The information and consultation procedures provided for in the circumstances referred to in this point shall be carried out without prejudice to Article 1(2) and Articles 8 and 8a.; (4) point 5 is replaced by the following: 5. The European Works Council or the select committee may be assisted by experts of its choice, in so far as this is necessary for it to carry out its tasks. Such experts may include representatives of recognised Community-level trade union organisations. At the request of the European Works Council, such experts shall have a right to be present at meetings of the European Works Council and meetings with central management in an advisory capacity. Central management shall be informed thereof in advance.; (5) point 6 is replaced by the following: 6. The operating expenses of the European Works Council shall be borne by central management. Central management shall provide the members of the European Works Council with such financial and material resources as enable them to perform their duties in an appropriate manner. In particular, the cost of organising meetings and arranging for interpretation facilities and the accommodation and travelling expenses of members of the European Works Council and its select committee shall be borne by central management unless otherwise agreed. The operating expenses of the European Works Council shall include reasonable costs of legal experts. Operating expenses shall be notified to central management before they are incurred. In compliance with the principles set out in this point, the Member States may lay down budgetary rules regarding the operation of the European Works Council..