Works councils were introduced in Hungary in 1992, partly on the model
of the German industrial relations system. The objective was to resol
ve a crisis of industrial relations in the transition to a market econ
omy: the fragmentation of trade unions, the vacuum of institutionaliza
tion, and the representation gap for non-union workers. Drawing on cas
e study research, this article evaluates the experience to date and co
ncludes that the 'artificial' imposition of an unfamiliar structure of
employee representation has been only partly successful, though argua
bly contributing to the consolidation of industrial relations in a mul
ti-union environment.