ABSTRACT
The establishment of cross-border structures of representation in European companies touches on a number of questions which transcend the scope of the individual undertaking. The reason is that the emergence of functioning and strong European Works Council structures also poses the question as to how transnational structures of industrial relations and the social dimension of the European Union might develop. The social effects and political consequences of globalisation continue to be disputed. In the post-war Keynesian state, industrial relations were embedded in a network of social rights and safety nets. Moreover, by setting rules and arbitrating conflicts the state was able to reconcile the income interests of wage earners and the valorisation interests of companies. The dismantling of external economic borders in the wake of globalisation has been accompanied by growing domestic social fragmentation. In contrast, there is an alternative perspective which sees the welfare state as a necessary prerequisite for globalisation.
