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The Impact of European Works Councils on Management Decision‐Making in UK and US‐based Multinationals: A Case Study Comparison
Author(s) -
Marginson Paul,
Hall Mark,
Hoffmann Aline,
Müller Torsten
Publication year - 2004
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.2004.00312.x
Subject(s) - statutory law , multinational corporation , industrial relations , agency (philosophy) , business , cohesion (chemistry) , accounting , public administration , public relations , political science , management , economics , sociology , law , finance , social science , chemistry , organic chemistry
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.