Worker participation and Europe in the long 1970s: a crisis of integration and a crisis of capitalism

Abstract The mood amongst workers in Western Europe as the 1960s ended was one of frustration and anticipation. From the streets of Paris in May 1968 to the factory floors of Turin in the autumn of 1969, social movements of workers and students demanded a real say over their daily lives and the institutions that shaped them. These calls for economic democracy were picked up by trade unions, national politicians and, eventually, the European Commission. In 1973, having published proposals that included plans for ‘worker participation’, the Commission wrote that if employees did not have a voice, the Commission’s proposals would not ‘satisfy the requirements of society today’. However, the Commission’s interpretation of industrial democracy was criticised by trade unions and socialist politicians, buoyed by the militancy of the workers, for not going far enough. As the Commission tried to persuade labour representatives that the European project was taking their demands seriously, another critique of worker participation crystallised on the right. As Keynesianism lost credibility in Member States, and a neoliberal discourse emerged around the need for Europe to be ‘competitive’ and ‘flexible’, employer groups pushed back against worker participation and undermined a labour movement that had posed a genuine threat to capital’s interests. This paper tells the story of one component of the Commission’s plans: the proposed Fifth Company Law Directive. Using archival material from EC institutions and employer lobby groups, it argues for an understanding of company and labour law harmonisation that takes seriously the political economy of Western Europe during the ‘Long 1970s’.