European Works Councils: Their Impact on the Europeanization of Industrial Relations in an Era of Market Globalism

The European Works Council (EWC) Directive provides the establishment of a social partnership forum within Multinational Companies (MNCs). The directive gives employees the right to information and consultation with the supra-national group management. The aim of this concept paper is to contribute to the debate on the Europeanization of Industrial Relations (IR) in the European Union. Specifically, it assesses the influence that EWCs, a novel institution within certain Euro-companies, have on the convergence of industrial relations among the member states. This critical topic can be evaluated from the standpoint of the current theory and its practical implications in order to draw the perspectives for a European system of IR both within MNCs and the rest of the companies. Our conclusions indicate that EWCs contribute to Europeanization in several aspects of employee relations, although this contribution has been limited to those issues that are wished for by the MNCs.