Employees are an asset for any company board – providing shop-floor experience, knowledge and expertise to board-level decision-making.
The above qualities from the employees improve management decisions and thereby the company’s economic performance, not least because of the long-termism encouraged by the employee perspective. Employee representation in company boards also gives the employees the possibility to be informed and consulted on the governance of the company, thereby ensuring work-life democracy.
NFU has pushed through wordings in EU legislation that safeguards and promotes employee representation in company boards. NFU’s influence on EU corporate governance rules has not only protected the Nordic model in this area, but also helped to promote our system in the whole of the EU.
Rules on how to govern companies are an important part of achieving sustainable finance. Employee representation in company boards is a key issue in this. Employee representation is common in the Nordic countries but not as much in the rest of Europe.
NFU has ensured that there are wordings in EU legislation that safeguards and promotes employee representation in company boards.
What NFU thinks
Employees are interested in the long-term performance of the company and thus contribute to sustainable business models.
NFU thinks that employee participation in corporate decision-making should be strengthened, as it contributes to better and more sustainable corporate governance. Employees should be represented in company boards and in other governance functions. This contributes to sound and effective corporate governance.
Employee representatives should, were applicable, be appointed by a trade union. This increases their democratic legitimacy when representing the company’s employees. Employees have an absolute right to be informed and consulted in company restructuring, resolution and any other material changes to corporate reality.