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The Progressive Policy Think Tank

Chart of the month: European participation index

The UK’s corporate governance structure prioritises shareholders above all other stakeholders. This means that workers have very little voice in the way UK firms are run, indeed we rank alongside Lithuania at the bottom of the EU-27 on this measure of worker participation. The IPPR Commission on Economic Justice is investigating the relationship between weak worker participation and other outcomes such as inequality and poor productivity as part of our work on corporate governance.

The European Participation Index is a composite index which summarizes the extent of worker participation using measures of both formal rights and the extent of participation on three levels: in the board, at the establishment level and through collective bargaining.