Sweetening privatisation with employee share-ownership: Good for unions and management?

Authors: McCarthy, D., Reeves, E. and Turner, T.

Journal: International Journal of Human Resource Management

ISSN: 0958-5192


This paper examines the outcomes that privatisation accompanied by an employee share-ownership plan (ESOP) has for employee commitment. Our analysis of Ireland’s former state-owned telecommunications company, Eircom, shows that significant proportions of employees report both increased and reduced levels of commitment to management and trade unions. In further exploring these outcomes, it was found that perceived deterioration in working conditions and workplace participation since privatisation were significant factors in reducing employee commitment. On the other hand, perceived increases in management-union collaboration are associated with increased management and dual commitment but reduced commitment to the trade unions.

Source: Manual

Preferred by: Dermot McCarthy