scholarly journals Works council effectiveness in subsidiaries of MNCs during reorganizations: Case study evidence from the Netherlands

2015 ◽  
Vol 38 (4) ◽  
pp. 677-700 ◽  
Author(s):  
Saraï Sapulete ◽  
Annette van den Berg

Internationalization of organizations has been a threat for (national) industrial relations. This study compares three cases to test the influence of works councils on decision-making in multinational companies (MNCs), going through reorganizations. The authors argue it is important to take account of internal factors in the subsidiary, namely the power capabilities and interests of the actors involved. They study these by looking at the network partners of works councils and aligned interests of local management and works council. The findings show that aligned interests form an important prerequisite for positive management attitude, trust and informal relations, positively affecting reorganizations in subsidiaries of MNCs.

2020 ◽  
Vol 3 (1) ◽  
pp. 29-50
Author(s):  
Christian Grund ◽  
Dirk Sliwka ◽  
Krystina Titz

PurposeWe analyze the role of works councils for the use of performance appraisals (PA). We distinguish between the incidence of PA systems as intended by the firm and their actual implementation on the level of the individual employee.Design/methodology/approachWe draw on two complementary data sets. These are the German Linked Personnel Panel (LPP), which combines firm-based information with information provided by several of those employees, and the German Socio-Economic Panel (SOEP), which is a representative longitudinal study of persons living in Germany.FindingsWe find that works councils tend to promote rather than restrict PA. Employees working in establishments with a works council are more likely to face a formal PA procedure. Works councils also act as a transmission institution for the actual use of an existing PA system – i.e. among the firms that claim to implement PA for all their employees, the likelihood of their employees actually having regular appraisals is substantially larger when works councils are in place. Moreover, the existence of works councils is positively related particularly to PA systems, which affects bonus payments.Research limitations/implicationsWe contribute to the understanding of the work of works councils in firms. In more general, we shed light to the relation of industrial relations and human resource management in firms.Practical implicationsThis result hints at a higher acceptance of PA systems in firms with works councils. It seems likely that the stronger formalization of such systems necessitated by codetermination laws increases the likelihood of supervisors consistently carrying out such appraisals.Originality/valueWe are the first who complement the analysis of the existence of HR practices (PA system) with its actual use for employees.


1999 ◽  
Vol 5 (3) ◽  
pp. 302-319 ◽  
Author(s):  
Ulke Veersma

Dutch works councils are bodies of workers' representation that are equipped to influence enterprise policy at the national level. Possibilities for information disclosure, training and for the resolution of disputes through the court are. in broad terms, well established. The introduction of European Works Councils (EWC)1, however, look more time than in other countries. Nevertheless, the Directive has had its effects in the Netherlands since the first EWC was installed at the ING bank in April 1996. EWCs now operate in many Multinational Corporations (MNCs). In this article the first experiences of European Works Councils (EWCs) are reported. EWCs were surveyed on, among other things, the main impediments to their effective functioning at the European level, Furthermore, the article addresses the question of what strategies are being developed. Dutch MNCs appear to be generally behind with the establishment of EWCs. Another general conclusion of the survey is that, with the establishment of the EWC, different elements of industrial relations from other countries are being introduced, which can be seen as a first step towards the europeanisation of the system of national works councils in the Netherlands. It has yet to be seen if Dutch works councils will be able to maintain their relatively high standards, and possibly raise them to match those of other European countries, or whether a downgrading harmonisation has been put into force. More comparative research, which has to cover a longer period of lime, is required to point out whether the last will be the best at the European level.


2018 ◽  
Vol 25 (04) ◽  
pp. 464-480 ◽  
Author(s):  
Karin E. van den Bosch ◽  
Anna Krzeminska ◽  
Eun Young Song ◽  
Lineke B. E. van Hal ◽  
Mitzi M. Waltz ◽  
...  

AbstractIn this exploratory case study based on qualitative research, we explore the perspectives and experiences of autistic self-advocates in the Netherlands regarding autism, (self-)advocacy, and consumer-run organizations. The focus of our study is a consumer-run organization by and for adult Persons on the Autism Spectrum in the Netherlands: PAS-Nederland or PAS for short. Our analysis reveals four themes relevant to the acceptance and integration of adults with autism into society and work: (1) invisibility of autistic adults; (2) diversity of the autism spectrum; (3) autistic leadership; and (4) collaboration between people with and without autism. We discuss the practical implications of our findings for the inclusion of people with autism in work and society. Our study underscores the importance of putting autistic people at the center of decision-making processes and solutions aimed at improving their outcomes in society, in general, and in the workplace specifically.


2005 ◽  
Vol 1 (3) ◽  
pp. 46-60
Author(s):  
Rienk Goodijk

In this paper, we present our first research findings on the opportunities for works councils and their practices to influence the supervisory board member(s) election under the ‘old’ co-option system. When and under which conditions works councils are really using their right to propose supervisory board candidates and what kind of effects could be expected from that? The conceptual framework for our research work is presented next, finally followed by a description of the first research findings. The research findings to date, reveal what sort of conditions and factors have a stimulating impact on the works councils’ behaviour to use the formal right to propose supervisory board candidates, to influence the composition of the supervisory board and to build up a relationship with that board. The research also shows the perceived effects of proposing candidates. The findings confirm the expectation that the attitude of the parties involved is very dominant and that works councils which are really striving for a better strategic position at the corporate level, are more actively involved than other works councils.


2016 ◽  
Vol 32 (2) ◽  
Author(s):  
Harry van den Tillaart ◽  
Jan Heijink ◽  
John Warmerdam

Going forward step by step: The development of worker participation in Works Councils Based on empirical research we describe in this contribution the development of the Works Council in the Netherlands during the past decennia. The Works Council was introduced by law in 1950 as an important institution for worker participation at company level and research demonstrates that nowadays it occupies a solid position in the Dutch system of labor relations. Most companies actually have established a Works Council, according to the legal obligations. Most employees have the opinion that the Works Council is an important channel for the promotion of their interests. Works Councils ánd employers generally are positive about the functioning of the Works Council in this sense and perceive a growing influence of worker participation in their companies' policy, in particular in decisions regarding the companies' social regulations and working conditions. Important preconditions for this generally positive development are the level of competence and experience of Works Councils' members, the improved relationships with employers, that provide more opportunities for early involvement in decision making, and the stronger embedment of Works Councils in the organization as a whole. On this last point, however, still further improvements are possible, for instance through more direct involvement of the employees themselves in specific Works Councils' tasks. Such a specific involvement could tackle at the same time the problem that animosity for fulltime Works Council candidacy is rather low. Another point of attention is that due to its early involvement in decision making the Works Council runs the risk of loosing too much of its controlling power on behalf of employees, balancing the power of the employers. It is this double role as a sparring partner of management and as a countervailing power in the organization that provides a really challenging task for Works Councils, which requires a high level of competence of its members and a sound embedment among the employees.


ILR Review ◽  
1997 ◽  
Vol 51 (1) ◽  
pp. 3-17 ◽  
Author(s):  
William N. Cooke

Although managers of multinational companies have identified labor practices and regulations, access to skilled labor, and similar factors as important considerations in foreign direct investment decision-making, few studies have empirically examined the influence of industrial relations factors on foreign direct investment. Applying a transaction costs framework to U.S. Department of Commerce data published in 1992, the author examines the influence of several key industrial relations variables on U.S. foreign direct investment across nine industries and nineteen OECD-member countries. Across the countries studied, U.S. foreign direct investment was negatively affected by the presence of high levels of union penetration, centralized collective bargaining structures, stiff government restrictions on layoffs, and pervasive contract extension policies; it was positively affected by high levels of education and policies requiring works councils.


2005 ◽  
Vol 22 (1) ◽  
pp. 47-73
Author(s):  
John P. Windmuller

This article analyzes the organization of employers in the Netheriands for their industrial relations tasks. After first describing the role of individual employers and explaining why that role is a relatively small one, the article emphasizes the structure and functioning of employers associations in industrial relations. Special attention is given to the existence of pluralistic associations in a country where by tradition most if not all social organizations are pluralistically organized. The postwar wage and economic policies of the Dutch government have encouraged a high degree of centralized decision-making among employers as well as among labor organizations. The article concludes with some observations about the likely consequences of a current trend toward greater decentralization.


2021 ◽  
pp. 0143831X2110200
Author(s):  
Saskia Boumans

This article considers the debate about the process of liberalisation of industrial relations from an ideational institutional perspective. While the gradual liberalisation of industrial relations has increased employer discretion, the role of employers’ organisations in this process is unclear. The case study is the Netherlands, a neo-corporatist country described as stable and robust but where institutional outcomes have undergone major shifts. To understand how this happened, the author analysed 40 years of collective bargaining policy using an ideational approach. The article argues that Dutch organised employers had the confidence that the strength of their ideas was enough to gradually but surely change industrial relations within the existing neo-corporatist framework by redefining the role of the firm, the state and the employee in the economy. The article also shows that since the early 2010s Dutch organised employers have changed their strategy leading to further de-collectivisation of industrial relations.


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