When are European Works Councils informed and consulted, and how do they gain influence? A quantitative analysis

Abstract

The objective of European Works Councils (EWCs) is to provide employees in multinational companies with information on transnational issues, and with the opportunity to voice their opinions, in order to influence managerial decision‐making. Few, however, reach that goal. This article therefore asks the question: Why? What factors explain whether or not an EWC is able to reach its goals? Building on previously established models and using large‐scale survey analysis, this article largely confirms the importance of factors related to management structure and policy, employee‐side organisation and interaction with management. As several of the main determinants relate directly or indirectly to managerial agency, the study discusses alternative ways to improve EWC functioning by focusing on the role of management.

Can access to company boards improve transnational employee representation? Insights from employee representation in European Companies

“…While some EWCs have advanced well beyond the rights stipulated in the EWC Directive and, for example, act as negotiating partners for management, others are little more than 'symbolic' (see Hauser-Ditz et al, 2016;Kotthoff and Whittall, 2014;Lecher et al, 2001). Moreover, quantitative studies indicate that while EWCs are frequently informed, they are rarely consulted (De Spiegelaere, 2021;De Spiegelaere et al, 2022;Waddington, 2011), suggesting that EWCs have acquired only a rather limited capacity to influence managerial decision-making. This is also linked to the fact that EWCs are not always informed and consulted in a timely or comprehensive manner, limiting and sometimes entirely preventing employee representatives from exercising early and coordinated influence at transnational level (Carley and Hall, 2006;Voss, 2016;Waddington, 2011).…”

“…The effectiveness of EWCs as representative bodies has been ascribed to a wide range of factors, including their interactions or relationships with other actors (management, unions, nationallevel employee representation) (Lecher et al, 2001); structural factors, such as management structures (Marginson et al, 2004); and the degree of alignment between company and EWC structures (Hauser-Ditz et al, 2016). Other studies have stressed the significance of management attitudes towards EWCs in determining their effectiveness (De Spiegelaere, 2021;Pulignano and Waddington, 2020). Although links to national arrangements for employee interest representation have been noted as relevant, as yet there has been no explicit reference to the role of board-level employee representation.…”