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In the mid to late 1970s, the deliberations of the Bullock Committee on industrial democracy led to a set of proposals for “worker directors” on the boards of large private companies. The proposals generated strong partisan reactions, and many of the current views of political parties, employers and trade unions were shaped during this period. Recently, the trade unions and the Labour Party have reaffirmed their commitment to the Bullock principles in their election programme pledges to develop the planning of industry through an extension of industrial democracy. By contrast, the continuing hostility of the Conservative Party and many employers to the extension of workers' participation through legislation has been shown by the coolness with which they have received the so‐called “Vredeling” proposals from the European Commission on workers' rights to consultation and company information.

The changing environment within which SMEs are operating is examined by reference to detailed case studies of three medium‐sized firms (one in the pharmaceutical sector and two in engineering). Following the development of a framework for analysis the cases are discussed to illustrate the direct and indirect ways in which pressures in the network of business relationships affect the management of employment relations. Particular attention is given to the effects of these pressures on management structure, work organisation and human resources policies and practices. Far from enjoying greater discretion following the decline in institutional arrangements and labour market deregulation, managers in SMEs find themselves constrained in new ways. It is argued that employment relations in these firms is shaped strongly by specific customer requirements exercised through the supply chain rather than being driven by broad market forces.

Contrasts theories of the “Japanization” of British industry with empirical evidence from established car producers in that industry. Suggests that while the UK car industry has been heavily influenced by Japanese methods, established producers follow policies marked by indigenous influences rather than by any unmediated Japanese effect. Proceeds to explore relationships between processual change in plant‐level work organization and the overarching context of institutions and ideas. Investigates the relevance of the two major theoretical models of workplace change in the motor industry ‐ the “diffusion” and the “bolt‐on” models of change ‐ and their conflicting interpretations of the impact of the Japanese “lean production” approach. Compares models with case‐studies of changing work practices at Rover and Peugeot and suggests that neither model provides a satisfactory account of the patterns of change found. Develops instead a model of change which emphasizes the creative adaptation of production practices within the British context.

Two studies of compulsory ballots in trades unions are discussed.

In spite of the recession and its attendant threats to workforce size and union power, a well‐organised union can still influence management and company plans. Though management still have a range of policy options, the point of trade union resistance is to force management into accepting options more favourable to workforce interests. A case study outlining a type of factory‐based union organisation which has survived the recession through successfully contesting managerial decisions, draws the conclusion that the central element of such activity's success is that it must be moulded to a broader, less insular, more political view of trade union activity. The evidence supports the argument that steward organisations have largely maintained their position of the 1970s. Union membership and support remains a crucial issue in maintaining union power, and shop stewards must continue to re‐examine ways of involving and informing their members.

The past two years have seen considerable changes in the organisation of the Industrial Relations Research Unit (IRRU) at the University of Warwick as well as its personnel. It is now a Designated Research Centre (DRC) for which the university is responsible, as opposed to the Economic and Social Research Council (ESRC). The unit now comprises members of the DRC and of the industrial relations teaching staff of the school. An overview of the main research projects being undertaken during the first phase of the eight‐year term of the DRC is given. These can be divided into three broad areas: those concerned with managing industrial relations; trade unions and collective bargaining; and the law and industrial relations. Some of the thinking behind these projects is given. It is argued that continuity is as important as change in the work of the unit, in particular in the value placed on theoretical developments and interdisciplinary research. There is no reason why new areas of investigation cannot be accommodated within additional definitions of industrial relations

This article makes a significant contribution to the debate about changes in the management of employee relations over the 1980s. Drawing upon data from 40 organisations, the author attempts to assess the extent of these changes in typical, rather than special case, companies. He finds that the management of people is now much more likely to be linked to competitive position, and to be principally the concern of line managers.