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Works council effectiveness in subsidiaries of MNCs during reorganizations: Case study evidence from the Netherlands

Author

Listed:
  • Saraï Sapulete

    (Tilburg University, the Netherlands)

  • Annette van den Berg

    (Utrecht University School of Economics, the Netherlands)

Abstract

Internationalization of organizations has been a threat for (national) industrial relations. This study compares three cases to test the influence of works councils on decision-making in multinational companies (MNCs), going through reorganizations. The authors argue it is important to take account of internal factors in the subsidiary, namely the power capabilities and interests of the actors involved. They study these by looking at the network partners of works councils and aligned interests of local management and works council. The findings show that aligned interests form an important prerequisite for positive management attitude, trust and informal relations, positively affecting reorganizations in subsidiaries of MNCs.

Suggested Citation

  • Saraï Sapulete & Annette van den Berg, 2017. "Works council effectiveness in subsidiaries of MNCs during reorganizations: Case study evidence from the Netherlands," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 38(4), pages 677-700, November.
    • Handle: RePEc:sae:ecoind:v:38:y:2017:i:4:p:677-700
    DOI: 10.1177/0143831X15586436
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