Citation: Triantafillidou, E.;
Koutroukis, T. Human Resource
Management, Employee
Participation and European Works
Councils: The Case of Pharmaceutical
Industry in Greece. Societies 2022, 12,
167. https://doi.org/10.3390/
soc12060167
Academic Editors: Gregor Wolbring
and Sandro Serpa
Received: 27 June 2022
Accepted: 16 November 2022
Published: 21 November 2022
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societies
Article
Human Resource Management, Employee Participation and
European Works Councils: The Case of Pharmaceutical Industry
in Greece
Eleni Triantafillidou * and Theodore Koutroukis
Department of Economics, Democritus University of Thrace, 69100 Komotini, Greece
* Correspondence: eltriant@econ.duth.gr
Abstract: Employee participation is a broad notion that encompasses sets of practices that enable
employees to participate in the decision-making process on issues affecting them leading to a com-
mitted workforce. According to the 2009/38/EC Directive, a European Workers’ Council (EWC) is
established in all undertakings and all community-scale groups of undertakings for the purpose of
informing and consulting employees. This study investigates the impact of employee participation
on employees and organizations and more specifically the potential benefits and the added value of
participation for employees and organizations, the potential costs and threats of employee partici-
pation and the added value of EWCs in multinational subsidiaries in the pharmaceutical industry
in Greece. The data gathering was carried out through in-depth semi-structured interviews with
management, HR executives, trade union representatives and EWC representatives using a semi-
structured questionnaire based on the state-of-the-art literature review. Organizations participating
in the study are subsidiaries of multinational companies with an active European Works Council in
the pharmaceutical industry in Greece. Findings suggest that there are potential benefits of employee
participation practices for the employees and added value for the pharmaceutical companies and
provide a useful perspective for managers and researchers in the field of labor relations and human
resource management.
Keywords: employee participation; labor relations; human resource management; European Works
Councils; pharmaceutical industry; multinationals
1. Introduction
Although employee relations are related to Human Resources Management (HRM),
the study of employee relations within multinational corporations has not been explored
as much as HRM in multinational corporations. Frequently asked questions in the interna-
tional literature are whether multinationals try and follow the same policies and practices
for all their operations regardless of location, essentially exporting the successful parent
country approach [1]. This strategy allows for a degree of strategic integration and coher-
ence between the various units. The next question is whether multinational companies
follow policies and practices that are more harmonized and ensure adaptability to the
requirements of local regimes. These questions and these issues have occupied many scien-
tists for years. Extensive research has been carried out to determine the importance of the
influences of the host country and the mother country in the management of employment
relationships in the subsidiaries [1].
Multinational companies are a source of innovation in the dissemination of new HRM
policies and employee relations management practices. Human resource management
and employee relations as a function of HRM are vital and challenging issues in the
pharmaceutical industry. There are a few recent studies analyzing the role of HRM in the
pharmaceutical firms [2,3].
Societies 2022, 12, 167. https://doi.org/10.3390/soc12060167 https://www.mdpi.com/journal/societies