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Capability Theory, Employee Voice and Corporate Restructuring: Evidence from UK Case Studies

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  • Deakin, S.
  • Koukiadaki, A.

Abstract

We examine the relationship between capability for voice and corporate restructuring through an empirical study of the operation of the UK's Information and Consultation (I&C) Regulations of 2004. These Regulations, implementing an EU Directive, introduced elements of the continental European codetermination model into UK law, while allowing for flexibility and experimentation in forms of employee representation. Although the absence of a preferred role for trade unions in the establishment of I&C arrangements limited the scope for interaction with existing structures of collective bargaining, there is evidence that unions were able to use the new arrangements to extend their influence in some contexts. We also report evidence of deliberation mitigating the impact of restructurings on workforce morale and contributing to a longer-term perspective on skills in some firms. We conclude that the I&C model has unfulfilled potential in the UK context.

Suggested Citation

  • Deakin, S. & Koukiadaki, A., 2011. "Capability Theory, Employee Voice and Corporate Restructuring: Evidence from UK Case Studies," Working Papers wp429, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp429
    Note: PRO-2
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    File URL: https://www.jbs.cam.ac.uk/cbrwp429/
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    References listed on IDEAS

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    1. Amartya Sen, 2005. "Human Rights and Capabilities," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 6(2), pages 151-166.
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    3. Ingrid Robeyns, 2005. "The Capability Approach: a theoretical survey," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 6(1), pages 93-117.
    4. 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.
    5. Joel Rogers & Wolfgang Streeck, 1995. "Works Councils: Consultation, Representation, and Cooperation in Industrial Relations," NBER Books, National Bureau of Economic Research, Inc, number roge95-1, March.
    6. Rakesh Khurana, 2007. "Introduction to From Higher Aims to Hired Hands The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession," Introductory Chapters, in: From Higher Aims to Hired Hands The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession, Princeton University Press.
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    Cited by:

    1. Che Supian Mohamad Nor & Ramesh Kumar Moona Haji Mohamed & Charles Ramendran SPR & Prem Kumar Nadarajan & Vimala Kadiresan, 2018. "Trade Unions: Relevant Out of Irrelevant? A Study on Generation’s Perception in Malaysia," International Journal of Human Resource Studies, Macrothink Institute, vol. 8(3), pages 3852-3852, December.

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    More about this item

    Keywords

    capability for voice; employee representation; labour law;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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