The Impact of European Works Councils on Management Decision-Making in UK and Us-Based Multinationals: A Case Study Comparison

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.