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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

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.

Suggested Citation

  • Simon Deakin & Aristea Koukiadaki, 2008. "Governance Processes, Employee Voice and Performance Outcomes in the Construction of Heathrow Terminal 5," Working Papers wp368, Centre for Business Research, University of Cambridge.
  • Handle: RePEc:cbr:cbrwps:wp368
    Note: PRO-2
    as

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    File URL: https://www.cbr.cam.ac.uk/fileadmin/user_upload/centre-for-business-research/downloads/working-papers/wp368.pdf
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    References listed on IDEAS

    as
    1. 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, January.
    2. 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, June.
    3. 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, September.
    4. 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, June.
    5. E. Paul Durrenberger, 2005. "Labour," Chapters,in: A Handbook of Economic Anthropology, chapter 8 Edward Elgar Publishing.
    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, September.
    7. John Armour & Simon Deakin & Suzanne J. Konzelmann, 2003. "Shareholder Primacy and the Trajectory of UK Corporate Governance," Working Papers wp266, Centre for Business Research, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    JEL classification:

    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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