EUROPEAN companies are losing out to US and Japanese competitors because their managers are less willing to involve workers in how best to improve organisation and performance.
This is one of the main findings in a new study, Closing the Gap, by Mr Keith Sisson of Warwick University. The study was commissioned by the European Foundation for the Improvement of Living and Working Conditions.
The survey finds that while 90 per cent of Japanese manufacturing companies with over 1,000 people have some form of partnership in the workplace, the EU rate is 15 per cent.
A similar, if less dramatic divergence, exists with the US, where over a third of large companies operate some form of partnership.
The lack of commitment by Irish managements to an effective partnership approach has been one of the major criticisms made by the Irish Congress of Trade Unions. It claims this has become a major block to a new national agreement to succeed the Programme for Competitiveness and Work.
Mr Sisson's study gives the ICTU plenty of ammunition. He says that while it is only possible to speculate on the reasons for low levels of direct participation by EU workers in improving their companies efficiency, "management would appear to be the key".
"Employees are in favour and there is more support from trade unions than might have been expected. Despite the widespread support it receives in management circles, the rhetoric of `empowerment' has yet to be put into practice in the great majority of organisations."
While he accepts partnership is not an easy option, Mr Sisson says the obstacles in the EU are no more formidable than those in Japan and, to a lesser extent, in the US.
Mr Sisson looks at various forms of partnership and participation. These vary enormously from limited consultation, delegating tasks to groups of workers and allowing them a direct say in decision-making.
His study finds that in Europe these work practices are still experimental. Often, such as in "quality circles" - where workers volunteer to work in groups to improve overall performance - managers are impatient for results and unwilling to commit adequate resources to ensure success.