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.