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European Works Councils in Central and Eastern Europe: varieties of institution building among French service sector multinationals
Author(s) -
Contrepois Sylvie,
Jefferys Steve
Publication year - 2010
Publication title -
industrial relations journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.525
H-Index - 3
eISSN - 1468-2338
pISSN - 0019-8692
DOI - 10.1111/j.1468-2338.2010.00587.x
Subject(s) - multinational corporation , subsidiary , institution , east central europe , resizing , business , service (business) , political science , economic growth , international trade , european union , economics , politics , marketing , finance , law
European Works Councils (EWCs) were launched as important institutions capable of helping workers coordinate responses to multinational corporations (MNCs). Euro‐optimists hoped they might help the transfer of the European social model to Central and Eastern Europe (CEE). Euro‐pessimists believed they lacked the capacity to be effective and suggested EU enlargement might encourage ‘a race to the bottom’ in Western Europe. This article focuses on the behaviours of eight service sector French‐origin multinationals in Bulgaria, Hungary and Poland. It finds that they generally adapt to the host country social model. However, while most keep their subsidiaries in separate compartments, investing little in EWC institution building, some are more ready to invest in stronger EWC institutions and to use them as an integrating tool.