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Reviews the competing perspectives given to the developments of European works councils (EWCs). In doing this an evaluation is given regarding the current state of the European labour movement and its ability to condition and influence contemporary practices of multinational corporations in an era of disturbances to existing national industrial relations regimes. In particular, the article addresses the concerns raised by commentators who adopt the position that EWCs may undermine traditional forms of joint regulation and, consequently, reinforce the development of narrow/parochial enterprise‐based unionism. The paper questions this position by offering an alternative interpretation regarding the evolution and influence that EWCs can have on the management of MNCs. It highlights how management information systems, organisational structures and power relations are vulnerable to employee collaborative activities across national boundaries.

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