The roles of workers' councils and trade unions in Polish private and state-owned enterprises are reviewed. State-owned enterprises and producer cooperatives are hypothesized to have greater industrial democracy than privatized or new private sector firms, and industrial democracy is hypothesized to be associated positively with enterprise performance. General support was found for both of these hypotheses with a national sample (n = 361) of Polish enterprises. There was considerable variance in Polish trade union density by firm type and, when present, trade unions were often found to have difficulty in securing collective agreements at the enterprise level. This study found Polish workers' councils to be positively associated with short- and long-term profitability and market share projections. These findings suggest that the current Polish labour code, which phases out workers' councils in the private sector, should be re-examined in order to expand industrial democracy at the enterprise level. Western European industrial relations paradigms which permit codetermination and/or consultation should be considered for adoption in Poland as a means to improve industrial democracy and organizational performance.
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