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Governance Processes, Employee Voice and Performance Outcomes in the Construction of Heathrow Terminal 5

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  • Simon Deakin
  • Aristea Koukiadaki

Abstract

The Major Projects Agreement (MPA) is a framework agreement designed to improve performance in large mechanical and electrical engineering projects. It is built on integrated team working and includes the trade union as a partner in strategic, organizational and employment decisions. The agreement was recently implemented in the construction of Heathrow Terminal 5 (T5). The use of the MPA at T5 illustrates how the promotion of a framework that legitimizes a role for unions in continuing dialogue with employers can positively affect organizational outcomes in large construction projects. While serving as a reminder that mechanisms exist within UK corporate governance for the representation and articulation of the interests of non-shareholder constituencies, T5 may be a unique case: the currently uncertain future of the MPA is indicative of wider constraints on the adoption of the partnership model in Britain.

Suggested Citation

  • Simon Deakin & Aristea Koukiadaki, 2008. "Governance Processes, Employee Voice and Performance Outcomes in the Construction of Heathrow Terminal 5," Working Papers wp368, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp368
    Note: PRO-2
    as

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    File URL: https://www.jbs.cam.ac.uk/cbrwp368/
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    corporate governance; labour-management relations; partnership; stakeholder theory;
    All these keywords.

    JEL classification:

    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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