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The Impact of European Works Councils on Management Decision‐Making in UK and US‐based Multinationals: A Case Study Comparison

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  • Paul Marginson
  • Mark Hall
  • Aline Hoffmann
  • Torsten Müller

Abstract

The operation of European Works Councils (EWCs) is taking management and employee representatives in MNCs into uncharted territory. In particular, for companies headquartered in Anglo‐Saxon economies there is little domestic tradition of statutory employee consultation. Drawing on comparative case studies, this article investigates the impact of EWCs on the process and outcomes of corporate‐level management decision‐making in UK and US‐based MNCs. Variation in EWC impact arises from the interaction of structural factors, such as business focus, management organisation and pre‐existing industrial relations arrangements, and agency factors, including management policy and the cohesion of employee representatives.

Suggested Citation

  • Paul Marginson & Mark Hall & Aline Hoffmann & Torsten Müller, 2004. "The Impact of European Works Councils on Management Decision‐Making in UK and US‐based Multinationals: A Case Study Comparison," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 209-233, June.
    • Handle: RePEc:bla:brjirl:v:42:y:2004:i:2:p:209-233
    DOI: 10.1111/j.1467-8543.2004.00312.x
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    References listed on IDEAS

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    1. Joel Rogers & Wolfgang Streeck, 1995. "Works Councils: Consultation, Representation, and Cooperation in Industrial Relations," NBER Books, National Bureau of Economic Research, Inc, number roge95-1.
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    Cited by:

    1. Mark Hall & Sue Hutchinson & John Purcell & Michael Terry & Jane Parker, 2013. "Promoting Effective Consultation? Assessing the Impact of the ICE Regulations," British Journal of Industrial Relations, London School of Economics, vol. 51(2), pages 355-381, June.
    2. Markus Hertwig, 2016. "Widening the lens: a structuration theory perspective on European works councils and transnational labour relations," Industrial Relations Journal, Wiley Blackwell, vol. 47(5-6), pages 473-491, November.
    3. Jan Zápal, 2007. "The Relation Between the Cyclically Adjusted Budget Balance and the Growth Accounting Method of Deriving Net Fiscal Effort," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 1(3), pages 324-334, November.
    4. Paul Marginson & Jonathan Lavelle & Javier Quintanilla & Duncan Adam & Rocío Sánchez-Mangas, 2013. "Variation in Approaches to European Works Councils in Multinational Companies," ILR Review, Cornell University, ILR School, vol. 66(3), pages 618-644, May.
    5. Vincent Pasquier & Rémi Bourguignon & Géraldine Schmidt, 2020. "La négociation des Plans de Sauvegarde de l'Emploi, quels arbitrages ?," Working Papers hal-03045537, HAL.
    6. John F. Geary, 2022. "Securing collective representation in non‐union European multinational companies: The case of Ryanair pilots’ (partial) success," British Journal of Industrial Relations, London School of Economics, vol. 60(3), pages 635-661, September.
    7. Chul Chung & Masayuki Furusawa, 2015. "The HRM of Foreign MNCs Operating in Europe," John H Dunning Centre for International Business Discussion Papers jhd-dp2015-04, Henley Business School, University of Reading.
    8. Tony Edwards & Paul Marginson & Anthony Ferner, 2013. "Multinational Companies in Cross-National Context: Integration, Differentiation, and the Interactions between MNCS and Nation States," ILR Review, Cornell University, ILR School, vol. 66(3), pages 547-587, May.
    9. Veronika Dehnen, 2013. "Across Boundaries: The Global Challenges Facing Workers and Employment Research 50th Anniversary Special Issue," British Journal of Industrial Relations, London School of Economics, vol. 51(3), pages 577-600, September.
    10. Magdalena Bernaciak & Aleksandra Lis, 2017. "Weak Labour, Strong Interests: Polish Trade Unions and the Integration of EU Energy and Service Markets," Journal of Common Market Studies, Wiley Blackwell, vol. 55(3), pages 432-448, May.
    11. Stan De Spiegelaere, 2021. "When are European Works Councils informed and consulted, and how do they gain influence? A quantitative analysis," Industrial Relations Journal, Wiley Blackwell, vol. 52(6), pages 502-527, November.
    12. Witzak, Patrick, 2016. "Theoretische Ansätze in der Eurobetriebsratforschung," Duisburger Beiträge zur soziologischen Forschung 2016-02, University of Duisburg-Essen, Institute of Sociology.
    13. Mohrenweiser, Jens, 2022. "Works Councils," GLO Discussion Paper Series 1103, Global Labor Organization (GLO).
    14. Aristea Koukiadaki, 2010. "The establishment and operation of information and consultation of employees’ arrangements in a capability-based framework," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 31(3), pages 365-388, August.
    15. Markus Hertwig, 2015. "European Works Councils and the Crisis: Change and Resistance in Cross-Border Employee Representation at Honda and Toyota," British Journal of Industrial Relations, London School of Economics, vol. 53(2), pages 326-349, June.
    16. repec:ilo:ilowps:453417 is not listed on IDEAS
    17. Haipeter, Thomas. & Lehndorff, Steffen., 2009. "Collective bargaining on employment," ILO Working Papers 994331283402676, International Labour Organization.
    18. repec:ilo:ilowps:433128 is not listed on IDEAS

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