Works council are a 'natural' extension of continental labor practices, but appear to be an infringement on the 'natural' operation of the market to many American managers. American managers have few restraints on their authority to determine pay levels, lay-offs, plant relocations or 'down-sizing'. Neither labor unions nor legislation seriously inhibit their right to manage. In contrast, the majority of European employees have their pay determined by collective bargaining compared to about twenty percent in the United States. (Adams, 1995, p. 55) Many European employees must also be informed and consulted regarding plans to lay-off, relocate or 'down-size' an operation. The employee participation programs, which are popular in the United States, are not equivalent because they are a management prerogative and not a legal requirement as they are in Europe.