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Governance Processes, Employee Voice and Performance Outcomes in the Construction of Heathrow Terminal 5

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  • Simon Deakin
  • Aristea Koukiadaki
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    Abstract

    The Major Projects Agreement (MPA) is a framework agreement designed to improve performance in large mechanical and electrical engineering projects. It is built on integrated team working and includes the trade union as a partner in strategic, organizational and employment decisions. The agreement was recently implemented in the construction of Heathrow Terminal 5 (T5). The use of the MPA at T5 illustrates how the promotion of a framework that legitimizes a role for unions in continuing dialogue with employers can positively affect organizational outcomes in large construction projects. While serving as a reminder that mechanisms exist within UK corporate governance for the representation and articulation of the interests of non-shareholder constituencies, T5 may be a unique case: the currently uncertain future of the MPA is indicative of wider constraints on the adoption of the partnership model in Britain.

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    File URL: http://www.cbr.cam.ac.uk/pdf/WP368.pdf
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    Bibliographic Info

    Paper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp368.

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    Date of creation: Jun 2008
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    Handle: RePEc:cbr:cbrwps:wp368

    Note: PRO-2
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    Web page: http://www.cbr.cam.ac.uk/

    Related research

    Keywords: corporate governance; labour-management relations; partnership; stakeholder theory;

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    References

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    1. David E. Guest & Riccardo Peccei, 2001. "Partnership at Work: Mutuality and the Balance of Advantage," British Journal of Industrial Relations, London School of Economics, vol. 39(2), pages 207-236, 06.
    2. John Armour & Simon Deakin & Suzanne J. Konzelmann, 2003. "Shareholder Primacy and the Trajectory of UK Corporate Governance," ESRC Centre for Business Research - Working Papers wp266, ESRC Centre for Business Research.
    3. Vives,Xavier (ed.), 2006. "Corporate Governance," Cambridge Books, Cambridge University Press, number 9780521032032, October.
    4. Sarah Oxenbridge & William Brown & Simon Deakin & Cliff Pratten, 2003. "Initial Responses to the Statutory Recognition Provisions of the Employment Relations Act 1999," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 315-334, 06.
    5. Simon Deakin & D. Hugh Whittaker, 2007. "Re-embedding the Corporation? Comparative perspectives on corporate governance, employment relations and corporate social responsibility," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(1), pages 1-4, 01.
    6. John Armour & Simon Deakin & Suzanne J. Konzelmann, 2003. "Shareholder Primacy and the Trajectory of UK Corporate Governance," British Journal of Industrial Relations, London School of Economics, vol. 41(3), pages 531-555, 09.
    7. Howard Gospel & Andrew Pendleton, 2003. "Finance, Corporate Governance and the Management of Labour: A Conceptual and Comparative Analysis," British Journal of Industrial Relations, London School of Economics, vol. 41(3), pages 557-582, 09.
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