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

Author

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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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    References listed on IDEAS

    as
    1. Amartya Sen, 2005. "Human Rights and Capabilities," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 6(2), pages 151-166.
    2. Ingrid Robeyns, 2005. "The Capability Approach: a theoretical survey," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 6(1), pages 93-117.
    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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    capability for voice; employee representation; labour law;

    JEL classification:

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

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