This article reviews the early phase of transformation of industrial relations in central and eastern Europe (CEE). It considers how far these countries have been able to consolidate institutions based on western European models and processes: an index of the ability of the European Union to influence institutional development. After summarizing the main features of industrial relations change in CEE, the article examines works councils as an emblematic case of the development of an industrial relations institution. The discussion concludes by outlining the limits of the impact of the EU on the development of industrial relations in CEE.
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