European works councils in Swedish corporations : a study of the legal regulation of EWCs and its significance for worker influence and governance of multinational corporations

The subject matter of this licentiate thesis concerns the two EU directives on European Works Councils. The analysis is confined to the Swedish implementation of these directives into Swedish law. The thesis defines the term "EWC regulation" to encompass both the Swedish levels of EWC legislation and the regulation of EWCs by EWC agreements themselves. The overall objective is to gain an increased understanding of the function of EWC regulation. This requires a normative analysis of both EU and national law as well as an empirical study of the application. The thesis includes a number of agreements on EWCs based on the Swedish legislation and their application in corporations based in Sweden. Three multinational corporations in the health care sector, financial sector and metal industry have been selected. The focus lies on the regulation's practical significance for worker influence and corporate governance. A distinction is made between rules on worker participation (in law) and worker influence (in practice). As a point of departure the author combines the theory of reflexive law with concepts borrowed from the fields of management studies and economic history. The methods used consist of doctrinal legal interpretation and semi-structured interviews. The key findings run as follows. The EWC regulation generates worker influence by enhancing the knowledge and unity of worker representatives. The regulation facilitate corporate governance by strengthening the legitimacy of management, improving the decision basis and channels of communication. The worker influence is, under proper circumstances, strong in issues such as reorganizations, reassignments, health and safety. The influence is weaker in situations of relocation, outsourcing across national borders and other forms of regime shopping