Since there is no equivalent "Inform and Consult" process in the US, why did it seem so surprising for HP, an American firm, to so readily adopt the EU procedure? The merger of Hewlett-Packard and Compaq in May 2002 triggered extensive consul¬ tation with workers in Europe. Under EU requirements, such corporate mergers require companies with 1,000 or more employees in the EU, with at least 150 of those in each of two or more member states, to consult with their employee representatives (through their works councils) on any business decisions contemplated as a result of the merger, such as redundancies, restructuring, and changed work arrangements (all of which were triggered by this merger).

Because of that experience, HP took the initiative under the new EU Inform and Consult Directive (and the pending—at that time—UK enabling legislation) to become the first US firm to announce an "Inform and Consult" framework which was approved by its workforce. At quarterly meetings, HP's management consulted with and informed their employee representatives on matters such as HP UK business strategies, financial and operational performance, investment plans, organizational changes, and critical employment decisions, such as layoffs, outsourcing, workforce agreements, and health and safety.

Key UK HP managers plus HP employee representatives elected to the HP consulta¬ tive forum from each of the four UK business units met on a quarterly basis. Wally Russell, who was HP's European employee relations director at that time, said, "My own preference is that we be the master of our own destiny. So let's work together now to [develop] a model that suits HP's culture."