This paper argues that new technology, the recession, and changing condition in the world market have transformed the ogranization of work and the system of industrial relations in many European countries. Many show a tendency toward decentralized collective bargaining at he firm level. the growing strength of workers' representative at the firm level has weakend the highly centralized bargaining systems (corporatism) which have contributed much to the stability of industrial relations. Case studies, one of west German works councils and one of Italian labormanagement committees, support the argument.