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This article traces the process of institutional change in industrial relations inBritain, France and Sweden over the last quarter-century in order to identify the mechanisms and forms of institutional change. These three cases demonstrate a high degree of institutional plasticity, and a greater convergence in industrial relations than comparisons of national institutions have tended to suggest. These findings in turn suggest the need to rethink both the role of institutions and the nature of institutional change in comparative political economy.

This book has both empirical and theoretical goals. The primary empirical goal is to examine the evolution of industrial relations in Western Europe from the end of the 1970s up to the present. Its purpose is to evaluate the extent to which liberalization has taken hold of European industrial relations and institutions through five detailed, chapter-length studies, each focusing on a different country and including quantitative analysis. The book offers a comprehensive description and analysis of what has happened to the institutions that regulate the labor market, as well as the relations between employers, unions, and states in Western Europe since the collapse of the long postwar boom. The primary theoretical goal of this book is to provide a critical examination of some of the central claims of comparative political economy, particularly those involving the role and resilience of national institutions in regulating and managing capitalist political economies.

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Despite continued social protest, something quite fundamental has changed in the regulation of class relations in France. This article explores two paradoxes of this transformation. First, a dense network of institutions of social dialogue and worker representation has become implanted in French firms at the same time as trade union strength has declined. Second, the transformation has involved a relaxation of centralized labor market regulation on the part of the state, yet the French state remains a central actor in the reconstruction of the industrial relations system. Institutional reform of industrial relations could not take place without the active intervention of the state because employers and trade unions alone were unable to create durable industrial relations institutions. The collapse of trade unionism meant the need for new actors on the labor side and only the state could both create and confer legitimacy upon those new actors.