Property in Work: The Employment Relationship in the Anglo-american Firm (Studies in Modern Law and Policy)

241 Pages·2007·0.78 MB·English

by  Wanjiru Njoya

PROPERTY IN WORK
Studies in Modern Law and Policy
Series Editor: Ralf Rogowski
The series provides a forum for the discussion of new fields and new theoretical
analyses of law. It seeks to publish research which is located at the interface of law
and policy. It is devoted to the contextual analysis of law. Context is understood as
meaning both the political and social context as well as the international context of
law. Accordingly the series comprises international, European and comparative as
well as interdisciplinary approaches to the study of law. A special emphasis lies on
socio-legal studies of general legal trends.
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Property in Work
The Employment Relationship in the
Anglo-American Firm
WANJIRU NJOYA
University of Oxford, UK
© Wanjiru Njoya 2007
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system
or transmitted in any form or by any means, electronic, mechanical, photocopying, recording
or otherwise without the prior permission of the publisher.
Wanjiru Njoya has asserted her moral right under the Copyright, Designs and Patents Act,
1988, to be identified as the author of this work.
Published by
Ashgate Publishing Limited Ashgate Publishing Company
Gower House Suite 420
Croft Road 101 Cherry Street
Aldershot Burlington, VT 05401-4405
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Ashgate website: http://www.ashgate.com
British Library Cataloguing in Publication Data
Njoya, Wanjiru
Property in work : the employment relationship in the
Anglo-American firm. - (Studies in modern law and policy)
1. Labor Laws and legislation - Great Britain 2. Labor laws
and legislation - United States 3. Industrial relations -
Great Britain 4. Industrial relations - United States
I. Title
344.4'101
Library of Congress Cataloging-in-Publication Data
Njoya, Wanjiru.
Property in work : the employment relationship in the Anglo-American firm / by
Wanjiru Njoya.
p. cm. -- (Studies in modern law and policy)
Includes bibliographical references and index.
ISBN-13: 978-0-7546-4587-0 1. Employee rights--England. 2. Right of
property--England. I. Title.
KD3009.N55 2007
344.4201--dc22
2006031582
ISBN-13: 978-0-7546-4587-0
Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham, Wiltshire.
Contents
Table of Cases vii
Table of Statutes xi
Preface xiii
Introduction Corporations, Workers and Property 1
The Complexity and Relativity of Property 1
Economic Dismissals and Job Security 5
Ownership of the Firm 10
The Anglo-American Firm 19
Outline of the Book 21
Chapter 1 Work, Property and Liberty 25
Introduction 25
From Status to Contract 26
The Right to Work 39
The Dominance of Employment as Contract 47
Contractual Job Security 50
Property in Work 58
The Proprietary Stakeholder Model 70
The Social Cost of Corporate Restructuring 76
Conclusion 83
Chapter 2 Ownership of the Firm 85
Introduction 85
Ownership of the Firm 86
Who Owns the Firm? 92
Property Rights and Stakeholder Theory 97
Shareholder Ownership in English Law 102
Shareholder Ownership in American Law 105
Conclusion 108
Chapter 3 Efficiency and Shareholder Primacy 111
Introduction 111
Shareholder Primacy and Takeovers 112
Market Selection and Efficiency 119
Political and Institutional Context 123
The Efficiency of Employee Ownership 134
Conclusion 148
vi Property in Work
Chapter 4 The Legal Framework 151
Introduction 151
Directors’ Duties to Employees 152
The Framework of European Law 167
Conclusion 200
Conclusion Corporations, Workers and Property 203
Bibliography 207
Index 223
Table of Cases
UK Cases
Addis v Gramophone [1909] A.C. 488 51
Allen v Flood [1898] A.C. 1 34, 37, 40-46, 67, 69, 83
Associated Newspapers Ltd v Wilson [1995] 2 A.C. 454 37
Baxendale v British Fuels [1999] 2 A.C. 52 170, 178, 180-183, 199
Beeston v Collyer (1827) 4 Bing 309 27
Betts v Brintel Helicopters Ltd [1997] I.R.L.R. 361 185
Bligh v Brent (1837) 2 Y & C Ex. 268 103
Brace v Calder [1895] 2 Q.B. 253 176
Bradford v Pickles [1895] A.C. 587 64
Brady v Brady [1989] A.C. 755 154
Brindle v H.W. Smith (Cabinets) Ltd [1973] 1 W.L.R. 1653 60
Bruton v London & Quadrant Housing Trust [2000] 1 A.C. 406 57
Cayme v Allan, Jones and Co. (1919) 35 T.L.R. 453 30
Devonald v Rosser & Sons [1906] 2 K.B. 728 69
Donoghue v Doncaster Amalgamated Collieries, Ltd [1939] 2 K.B.578 67, 177
Eastwood v Magnox Electric Plc [2004] I.R.L.R. 733 7, 54
ECM (Vehicle Delivery Service) Ltd v Cox [1999] I.R.L.R. 559 175, 185
Farrow v Wilson (1869) L.R. 4 C.P. 744 176
Ford Motor Co. Ltd v AEU [1969] 2 Q.B. 303 192
Foss v Harbottle (1843) 2 Hare 461 154
Fulham Football Club Ltd & Ors v Cabra Estates Plc (1993) 65 P. & C.R. 284 159
Gaiman v National Association for Mental Health [1971] Ch. 317 112, 154
Greenhalgh v Arderne Cinemas Ltd [1951] Ch. 286 153
Hampson v Price’s Patent Candle Company (1876) 45 L.J. Ch. 437 154
Hindle v Percival Boats Ltd [1969] 1 W.L.R. 174 60
Huttman v Boulnois, The Younger (1826) 2 Car. & P. 510 32
Hutton v West Cork Railway Co. (1883) 23 Ch. D. 654 155
Jaggard v Sawyer [1995] 1 W.L.R. 269 98
Johnson v Unisys [2003] 1 A.C. 518 6, 7, 50-54, 82
Johnstone v Bloomsbury Health Authority [1991] I.C.R. 269 55
Kerry Foods Ltd v Creber [2000] I.R.L.R. 10 189
Lee v The Showmen’s Guild of Great Britain [1952] 2 Q.B. 329 41
Litster v Forth Dry Dock & Engineering Co. [1989] I.R.L.R. 161 175
Lloyd v Brassey [1969] 2 W.L.R. 310 60
McInnes v Onslow-Fane [1978] 1 W.L.R. 1520 40, 69
viii Property in Work
McClelland v Northern Ireland General Health Services Board
[1957] 1 W.L.R. 594 52
Mahmud v Bank of Credit and Commerce International SA [1998] A.C. 20 53
Malloch v Aberdeen Corp. [1971] 1 W.L.R. 1578 51, 69
Marriot v Oxford and District Cooperative Society [1970] 1 Q.B. 186 60
Marrison v Bell [1939] 2 K.B. 187 30
Naigle v Feilden [1966] 2 Q.B. 633 41, 69
Nokes v Doncaster Amalgamated Collieries Ltd [1940] A.C. 1014 66, 67,
176-180, 194
O’Neill v Phillips [1999] 1 W.L.R. 1092 159
Parke v Daily News Ltd [1962] Ch. 927 153, 157, 161, 167
Percival v Wright [1902] 2 Ch 421 102, 104, 154
Porter v Metropolitan Police Comr [1999] All E.R. (D). 1129 87
Re Saul D. Harrison & Sons Plc [1990] B.C.L.C. 14 159
Re Smith & Fawcett Ltd [1942] Ch. 304 153, 154
Re Welfab Engineers Ltd [1990] B.C.L.C. 833 159
Reda v Flag Ltd [2002] U.K.P.C. 38 52, 54, 112
Reg. v Druitt (1867) 10 Cox 592 44
Ridge v Baldwin [1964] A.C. 40 50, 51, 69
Salomon v Salomon & Co. Ltd [1897] A.C. 22 104
Secretary of State for Trade and Industry v Gray [1995] 1 B.C.L.C. 276 159
Short v Treasury Commissioners [1948] 1 K.B. 116 104
Stevenson v United Road Transport Union [1977] I.C.R. 893 69
The Scottish Coal Company v McCormack [2005] C.S.I.H. 68 185
Townsend v Ash (1745) 3 Atk. 336 102
TGWU v James McKinnon Jr [2001] I.R.L.R. 597 189
Watson v Spratley (1854) 10 Ex. 222 103
West Mercia Safetywear Ltd v Dodd [1988] B.C.L.C. 833 100
Wilson & Palmer v United Kingdom [2002] I.R.L.R.568 37
Woods v W M Car Services (Peterborough) Ltd [1981] ICR 666 53
Wynes v Southrepps Hall Broiler Farm Ltd [1968] I.T.R. 407 60
Yewens v Noakes [1880] 6 Q.B.D. 530 27
US Cases
Adair v United States 208 U.S. 161 (1908) 35, 36
Amanda Acquisition Corp. v Universal Foods Corp. 708 F.Supp.984 (E.D. Wis.
1989) 164
A.P. Smith Manufacturing Co. v Barlow 98 A.2d 581 (N.J. 1953) 161
Aronson v Lewis 473 A.2d 805 (Del. 1984) 153
Ashwander v Tennessee Valley Authority 297 U.S. 288 (1936) 107
Baron v Strawbridge & Clothier 646 F.Supp. 690 (E.D.Pa. 1986) 164
Bleeker v Johnson 51 How.Pr. 380 (1876) 30
Table of Cases ix
Boyer v Western Union Tel. Co. 124 Fed. 246 (1903) 36
Brooks v Weiser 57 F.R.D. 491 (S.D.N.Y. 1972) 106
Cede & Co. v Technicolor, Inc. 634 A. 2d 345 (Del. 1993) 107
Coffeyville Vitrified Brick & Tile Co. v Perry 66 Kan. 297 (1904) 35
Coppage v Kansas 125 Pac. 8 36, 37
Davis v Gorton 16 N.Y. 255 (1857) 30
Dodge v Ford Motor Co. 170 NW 688 (1919) 161, 167
Fall River Dyeing & Finishing Corp. v NLRB 482 U.S. 27 (1987) 184, 185
First National Maintenance Corp. v NLRB 452 U.S. 666 (1981) 188
General Motors Corp. v NLRB 191 NLRB 951 (1971) 188
Guth v Loft, Inc. 5 A.2d 503 (1939) 153
Heidleberg v Lynn 5 Whart. 430 (1840) 31
Howard Johnson Co. v Detroit Local Joint Executive Board 417 U.S. 249
(1974) 185-187
John Wiley & Sons v Livingstone 376 U.S. 543 (1964) 186
Kauffman v Dreyfus Fund, Inc. 434 F. 2d 727 (1970) 107
Keyser v Commonwealth National Finance Corp. 675 F.Supp. 238 (M.D.Pa.
1987) 164
Koehner v Superior Court 181 Cal. App. 3d. 1155 56
Kusner v First Pennsylvania Corp. 395 F.Supp. 276 (1975) 106
Mills Acquisition Co. v Macmillan, Inc. 559 A.2d 1261 (Del. 1989) 167
NLRB v Bildisco & Bildisco 465 U.S. 513 (1984) 190
NLRB v Burns Int’l Security Servs., Inc. 406 U.S. 272, 288 (1972) 185, 186, 189
NLRB v Burnup & Sims 379 U.S. 21 (1964) 188
NLRB v Fibreboard Paper Products 379 U.S. 203 (1964) 187, 188
NLRB v Jones & Laughlin Steel Corp. 301 U.S. 1(1937) 38, 198
Ozark Trailers, Inc. 161 N.L.R.B. 561 (1966) 61
Paramount Communications, Inc. v Time, Inc. 571 A.2d 1140 (Del. 1989) 117, 165
Payne v West Atlantic Railroad 81 Tenn. 507 34
Pitcher v United Oil & Gas Syndicate, Inc. 174 La. 66 (1932) 35, 175
Revlon, Inc. v MacAndrews & Forbes Holdings, Inc. 506 A.2d 173 (Del.
1986) 161, 164-167
Shamrock Holdings, Inc. v Polaroid Corp. 709 F.Supp 1311 (1989) 167
Simons v Cogan 542 A.2d 785 (1987) 153
Sinclair Oil Corp. v Levien Del.Supr., 280 A.2d 717 (1971) 151
Smith v Van Gorkom 488 A.2d 858 (Del. 1985) 153, 164
State v Kreutzberg 114 Wis. 530 (1903) 36
Textile Workers Union v Darlington Manufacturing Co. 380 U.S. 263
(1965) 187, 188
United Steel Workers v United Steel Corp. 492 F.Supp. 1 45, 46, 83
Unocal Corp. v Mesa Petroleum Co. 493 A.2d 946 (Del. 1985) 161, 166, 167
Watson v Gugino 204 N.Y. 535 (1912) 22, 34
Woodward v Washburn 3 Denio 369 (1846) 66