Financialisation, shareholder value orientation, and the decline of trade union membership in the EU

Giorgos Gouzoulis, Giorgos Galanis and Panagiotis (Takis) Iliopoulos
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Giorgos Gouzoulis: Queen Mary, University of London, UK
Giorgos Galanis: Queen Mary, University of London, UK
Panagiotis (Takis) Iliopoulos: Katholieke Universiteit Leuven, Belgium

Transfer: European Review of Labour and Research, 2024, vol. 30, issue 2, 161-179

Abstract: This article shows that an orientation towards shareholder value and corporate indebtedness at non-financial firms have been negatively associated with union density in the EU over the past 21 years. We argue that the financialisation of non-financial firms makes them prioritise their ‘external (economic) balance’ at the expense of a cooperative ‘internal equilibrium’ model. In other words, corporate financialisation pushes non-financial firms to shift to non-participatory, market-based HR systems that directly undermine the role of trade unions. This study examines this corporate financialisation-induced shift within the EU in the wake of deeper economic integration since 1999 and provides panel data econometric evidence that it has significantly undermined union membership.

Keywords: Union membership; financialisation; shareholder value orientation; European Union; eurozone (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:treure:v:30:y:2024:i:2:p:161-179

DOI: 10.1177/10242589241245063

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