THE EWC DIRECTIVE AND THE CAPACITY OF THE EU TO DEVELOP EUROPEAN SOCIAL DIALOGUE WITHIN MULTINATIONAL COMPANIES
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European economic integration and EU enlargement have enhanced transnational restructuring in multinational companies (MNCs). This allows MNCs to benefit more from local competitive advantages in their production and in their access to consumer markets and labor markets. When the central management of MNCs decides to restructure their operations and eventually close a plant, this demonstrates their impact on local workplace developments. The EU Directive on European Works Councils (EWC Directive) can thus be assessed as a case of European social policymaking providing a corrective mechanism for the democratic deficit in MNC decision-making.
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