The objective of European Works Councils (EWCs) is to provide employees in multinational companies with information on transnational issues, and with the opportunity to voice their opinions, in order to influence managerial decision‐making. Few, however, reach that goal. This article therefore asks the question: Why? What factors explain whether or not an EWC is able to reach its goals? Building on previously established models and using large‐scale survey analysis, this article largely confirms the importance of factors related to management structure and policy, employee‐side organisation and interaction with management. As several of the main determinants relate directly or indirectly to managerial agency, the study discusses alternative ways to improve EWC functioning by focusing on the role of management.