ABSTRACT
From the 1970s onwards all Western European economies have faced a number of common developments which have fundamentally shaped the evolution of industrial relations. Western European economies have been undergoing a structural transformation in the transition from manufacturing to services. As services have expanded there has been a significant shift from manual to whitecollar employment. At the same time, developments in international trade have meant that European economies have become increasingly integrated into a global economy dominated by large multinational companies. The emergence of the single market in the European Union (EU) can be seen as an element in these developments, as European businesses seek to enhance their competitiveness in world markets. As new technological innovations based on microelectronics and telecommunications have developed, European firms have sought to compete by moving away from mass standardized production to customized, quality ‘hightech’ products which are aimed at niche markets.
