Faced with the rejection by European employers of the idea of EU action to guarantee workers the right to early information about company plans affecting jobs, the Social Affairs Commissioner, Mr Padraig Flynn, will today tell the social partners to reach agreement on the issue or he will legislate. The Commission will hear a report from Mr Flynn outlining reactions to proposals, floated in June, to extend provisions of EU law on consultation and information for workers.

Employers accepted the principle that consultation was good business practice but rejected the idea of legislation. Unions backed EU-wide legislative provisions.

If the social partners do not agree within six weeks to negotiate on the issue or if they do negotiate and fail to come up with an agreement within nine months, Mr Flynn will suggest setting down minimum rules at EU level to be fleshed out by negotiation at national or company level. Only where employers and unions fail to reach agreement on specific provisions will the EU minimum standards apply.

Although Mr Flynn says that the shape and scope of such legislation is a matter which should preferably be agreed by the social partners, he has in the past made clear his ambition that the provisions could extend to companies with as few as 50 employees. And while the minimum consultation procedures will not involve board representation or works councils, Mr Flynn is insisting that formal mechanisms and information channels should be put in place in companies.

He is also keen to ensure that the consultation is genuine and timely by making provision for "proportional and dissuasive" sanctions against employers who fail to comply.

The dialogue being opened by Mr Flynn is the so-called "secondstage consultation process" under the Social Chapter, which allows for agreements reached at social partner level to be enshrined in legislation by the Council of Ministers. It has already been used successfully in reaching agreements on parental leave and part-time workers' rights.