Variation in Approaches to European Works Councils in Multinational Companies

Abstract

Drawing on a unique international data set of multinational companies' employment practices, the authors use logistic regression analysis to address variation in the existence of and management practice toward transnational social dialogue through European Works Councils (EWCs). Adopting a contingency perspective, they find that the degree of internationalization of companies' operations and management organization, international HR structure, and the presence of workforce organization exercise strong influence on whether multinationals covered by the relevant European Union legislation have established an EWC. So too do multinationals' country of origin, sector, and size by employment. While concern has focused on the significant proportion of EWCs in which management's information and consultation practice seems to be minimalist, the authors find that this is less likely to be the case where the HR function is internationalized.T he repercussions of the growing international integration of multinational companies' (MNCs') operations have prompted regulatory initiatives by supranational governmental authorities, including the United Nations (UN), the International Labour Organization (ILO), the Organisation

Management, European Works Councils and institutional malleability

“…A core area of contestation is the mismatch between the purposes of information and consultation assigned to EWCs by European legislation and actual practice. In particular, analyses of these practices have demonstrated that many EWCs have failed to develop beyond rudimentary forms (Marginson et al, 2013). Qualitative studies and large-scale surveys agree that EWCs engage in information rather than consultation, so that employee representatives are unable to influence corporate restructuring (Telljohann et al, 2009; Waddington, 2011).…”

“…In combination, these points illustrate the institutional malleability which has shaped the pattern of development of EWCs (Waddington, 2011) and influenced the ‘learning curve’ of their evolution (Marginson et al, 2013). To date, there have been very few studies on the use of this malleability by management.…”

Who is dominant? Occupational Health and Safety management in Chinese shipping

“…For example, the European Union's European Works Councils Directive (1994) stipulates that multinational companies under certain conditions should establish transnational employee consultation structure covering their European operations. Research evidence suggests that compliance with this policy varies, ranging from non-compliance to minimal compliance, and to a proactive approach if the management can see the benefit of it (Marginson et al, 2013).…”

Advancing understanding on industrial relations in multinational companies: Key research challenges and the INTREPID contribution

“…Lavelle, 2008;Gunnigle et al, 2009;Marginson et al, 2010;Gooderham et al, 2011;Navrbjerg, 2011, Edwards et al, 2012;Marginson et al, 2013). The use of direct and indirect employee voice along with the incidence of hybrid or dualistic systems has been investigated through an approach that uses, and seeks to go beyond, the 'varieties of capitalism' (VoC) lens (Lamare et al, 2013).…”