This article examines two transnational agreements signed by the Volkswagen European and Global Works Councils, considering their interlinked implementation within subsidiaries in Britain, Italy, Spain and Germany. We demonstrate differing stances and some uncertainty towards principles of co-management, social dialogue and codetermination. These agreements have improved local industrial relations and strengthened cross-national interaction between employee representatives, despite significant differences in orientation regarding how unions should engage with management. However, the emerging international framework has not led to a clear politics of incorporation, with local trade unions being well aware of the risks of co-management and a more business-oriented relationship.
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