Phoenix from the Ashes? Labor-Management Partnerships in Britain

Abstract

This paper examines the “phoenix-like” resurgence of labormanagement partnerships in Britain. Enduring partnerships are found in sectors where both sides can make credible commitments to cooperate over the medium to long term. This depends on the presence of product market regulations that encourage competition on the basis of quality rather than price, labor market rules that grant workers significant voice rights during the process of restructuring, and corporate governance practices that encourage shareholders to take a long-term view of their investments. Because these conditions are the exception rather than the norm, the future of partnerships in Britain is far from assured.