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Assessing the impact of private equity on industrial relations in Europe

journal contribution
posted on 08.01.2016, 12:19 by Nick Bacon, Mike Wright, Louise ScholesLouise Scholes, Miguel Meuleman
Private equity firms are accused by trade unions of changing industrial relations in buyouts by demonstrating an unwillingness to recognize and work with trade unions, and by downgrading information and consultation. To explore these important policy issues, this article reports the first representative pan-European survey of managers’ perceptions of the impact of private equity on industrial relations. Managers report that private equity investment does not result in changes to union recognition, membership density or changes in management attitudes to trade union membership. Furthermore, managers in firms recognizing unions after private equity buyouts do not report reductions in the terms and conditions subject to joint regulation. Under private equity ownership more firms report consultative committees, managers regard these as more influential on their decisions, and indicate increased consultation over firm performance and future plans. Comparing industrial relations changes in different social models in Europe, the results suggest private equity firms adapt to national systems and traditional national industrial relations differences persist after buyout.

Funding

The authors would like to thank EVCA for financial support for this study.

History

School

  • Loughborough University London

Published in

Human Relations

Volume

63

Issue

9

Pages

1343 - 1370

Citation

BACON, N. ... et al., 2010. Assessing the impact of private equity on industrial relations in Europe. Human Relations, 63 (9), pp. 1343 - 1370.

Publisher

SAGE © The Author(s)

Version

VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2010

Notes

Closed access

ISSN

0018-7267

eISSN

1741-282X

Language

en