European Works Councils (EWC) were created under the initiative of the social partners and management (corporate management and/or European Federations) within large groups of undertakings such as Volkswagen in Germany (in 1990) or Elf Aquitaine in France (in 1991). They aimed at establishing transnational information and consultation procedures for salaried employees. European social partners (UNICE-CES-CEEP at the time) met to try negotiating an extension of the scope of these initiatives. As they did not reach an agreement, the EU Commission issued a Directive (EEC 94/45) dealing with the issue. The Directive was approved on 22nd September 1994 after consultation with all social partners (including the CEC).

As with all Directives, it had to be enacted in the national legal system of each member country. Under the terms of the Directive, agreements not complying with the Directive but signed before the date of effect of national enactment laws (French Law 96-985 dated 12th November 1996) are deemed applicable if they meet the object of the Directive: promoting European social dialogue in the company by means of exchanges of views between management and labour representatives. The CEC and its European federations are signatories to a large number of these agreements. Directive 94/45 also provided for possible revision after a five year period (mandatory deadline for setting up a European Works Council before implementation of the legal minimum requirements: 22nd September 1999.