France: a ruling on the information-consultation obligation for WCs operating in French subsidiaries of non-French companies (take-over situations), which hold EWCs but which do not detail how interaction should occur between the various representation levels

The dispute centred on the Thales takeover of Dutch headquartered digital security firm Gemalto. The WC in Gemalto’s French arm Gemalto SA (a 99.99% parent holding entity) turned to the courts and succeeded in requiring Gemalto SA (France) to provide the WC with full and complete information pertaining to the ownership changes. The Court of Cassation (High Court) judges handed down the ruling on 19 December 2018 that in the absence of an EWC or agreement detailing arrangements over how consultations between the different levels of worker representation are linked, then ‘the workers’ representative body of a company controlled by a parent company headquartered in another EU Member State should be consulted on all projects that affect the organization, management and general operations of the company and especially as regards measures that will alter the number or make-up of the personnel due to changes in the economic or legal organization of the company, including a corporate take-over that affects the parent company’s share structure.’
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Gemalto contested the decision by putting forward articles from the Labor Code that transpose Directive 2004/25 on takeover bids and does not intend for any obligation to inform personnel or representatives other than to those within the ‘company being targeted by the takeover.’ The Court of Cassation judges did not deny this point. However they held that Directive 2004/25 cannot impair regulations concerning information and consultation that stem from EC Directive 2009/38 as well as from EC Di

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