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Industrial Relations in Europe 2012 - European Commission - Europa

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2.4.1 <strong>Europe</strong>anisation of <strong>in</strong>dustrial relations through EWCs <strong>in</strong> MNCs<br />

EU <strong>in</strong>tegration, by remov<strong>in</strong>g barriers to the mobility of goods, capital and labour, promotes<br />

foreign direct <strong>in</strong>vestment and the transfer of the tradition of social dialogue and employee<br />

participation from EU-15 to CEECs (Meardi <strong>2012</strong>: 62). Mult<strong>in</strong>ational companies (MNCs) are<br />

likely frontrunners of <strong>Europe</strong>anisation of <strong>in</strong>dustrial relations because of their capacity to<br />

transfer social dialogue practices across countries of their operation. Some research has<br />

detected positive efforts of MNCs to transpose social standards from the EU-15 to the<br />

CEECs. For example, foreign employers helped to develop the structure of employers’<br />

associations <strong>in</strong> Poland, Bulgaria and Latvia, where they established their own associations. In<br />

Poland, MNCs took the lead<strong>in</strong>g role <strong>in</strong> creat<strong>in</strong>g a new employer organisation – the Polish<br />

Confederation of Private Employers Lewiatan (Polska Konfederacja Pracodawców<br />

Prywatnych Lewiatan, PKPP Lewiatan) <strong>in</strong> 1998. PKPP went on to become the lead<strong>in</strong>g<br />

employer confederation and now also organises a large number of Polish-owned companies<br />

(Marg<strong>in</strong>son and Meardi 2009: 25). With regard to coord<strong>in</strong>ated multi-employer barga<strong>in</strong><strong>in</strong>g,<br />

MNCs display a noticeably higher <strong>in</strong>cidence of second-tier or company negotiations than<br />

local firms <strong>in</strong> Bulgaria, Romania and Slovakia (Marg<strong>in</strong>son and Meardi 2009). Despite these<br />

efforts, the overall impression is that MNCs are not yet ready and committed to transferr<strong>in</strong>g<br />

forms of employee representation (Meardi <strong>2012</strong>). Instead of offer<strong>in</strong>g opportunities for<br />

coord<strong>in</strong>ated <strong>in</strong>dustrial relations, therefore, MNCs have contributed to further barga<strong>in</strong><strong>in</strong>g<br />

decentralisation <strong>in</strong> the CEECs. <strong>Industrial</strong> relations transfers from the EU-15 to the CEECs<br />

seem to be an exception rather than rule and are cont<strong>in</strong>gent on specific conditions (Marg<strong>in</strong>son<br />

and Meardi 2006, Meardi et al. 2009, Kahancová 2010). Workplace <strong>in</strong>dustrial relations <strong>in</strong><br />

MNCs <strong>in</strong> the CEECs confirm a departure from the EU-15 models because of frequent antiunionism,<br />

the absence of works councils, the use of agency work, temporary contracts and the<br />

practice of restructur<strong>in</strong>g without consultation with social partners.<br />

The 1994 <strong>Europe</strong>an Works Council Directive (Directive 94/45/EC, updated by the recast<br />

Directive 2009/38/EC) aims to ensure that employees <strong>in</strong> MNCs are properly <strong>in</strong>formed and<br />

consulted. Chart 2.16 presents MNCs by country of orig<strong>in</strong> affected by the EWCs Directive.<br />

By 2008, there was still a discrepancy between the number of MNCs with operations <strong>in</strong> the<br />

CEECs and the EU-2 (Cyprus and Malta) and those that already <strong>in</strong>troduced EWCs with<br />

CEEC and EU-2 representatives. In 2010, the total number of EWC bodies across the EU-27<br />

reached 969; and the number of EWCs <strong>in</strong>clud<strong>in</strong>g one or more representatives from the CEECs<br />

and the EU-2 reached 249. 23 This means that 25.7 percent of EWCs have one or more<br />

representatives from the EU-12. This suggests that structural EWC implementation stretches<br />

over a long time period. It should be noted, however, that the actual role of the EWC may<br />

differ from company to company and is subject to case study research related to specific<br />

MNCs.<br />

23 Source: Database on <strong>Europe</strong>an Works Council Agreements<br />

http://www.ewcdb.eu/documents/freegraphs/2010_10_EN.pdf<br />

98

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