Since the 1970s industrial relations in Europe have undergone much change, the majority of which has come from beyond the boundaries of Europe. The emergence of a global economy dominated by large multinational companies, structural transformations in the economies of western Europe from manufacturing to services, developments in new technology, an increase in white-collar employment at the expense of manual jobs and a continuing rise in unemployment have all had a major effect on industrial relations in all European countries.

The major impact on European industrial relations has been: increased decentralization in collective bargaining; a decline in trade union membership and influence; the emergence of new forms of management, including human resource management; new forms of participation and work organization; and the growing importance of European Union employment initiatives. Because of the wide diversity in industrial relations systems across different European countries, the changes have affected countries in Europe in different ways and there is little evidence to suggest that a European-wide industrial relations model is developing.

Colin Gill