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Communiqué, issue 5, 2004

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European Works Councils influence the advancement of industrial relations in countries which traditionally have no strong union or employee representative structures, concludes a recent Foundation study on the internal dynamics of the operation and functioning of EWCs.

This research project looked at the operation of EWCs with headquarters in France, Germany, Italy, Sweden and the UK. In-depth interviews with representatives of both management and workforce in parent and subsidiary companies took place to provide insight into the functioning of EWCs in enterprise and their impact on industrial relations and human resource management.

Several case studies gave evidence of an attempt at harmonisation of industrial relations in the group. This is important in terms of the expansion strategies of the majority of companies. The EWC, or employee-side members, support management as they endeavour to integrate newly acquired subsidiaries.

EWCs can have varying impacts on industrial relations. They can contribute to:

  • a harmonisation of industrial relations in the group,
  • an ‘export’ or transfer of industrial relations cultures from the home country to other countries,
  • an integration and mediation between or within countries,
  • establish a transnational interaction in the architecture of company industrial relations,
  • establish or improve industrial relations in subsidiaries, and
  • improve industrial relations in the parent company.

The EWC, or employee side members, support management endeavours of integrating the newly acquired subsidiaries.

The report is available at www.eurofound.europa.eu/publications/EF04109.htm

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