One must also consider whether a company is required to give advance notice of factory closings or large workforce reductions. This caused Compaq computer difficulty in the 1990s.

"Compaq acquired Digital in June 1998 but quickly ran into problems. European labor rules and work councils prevented Compaq from reducing staff quickly, and the company faced a number of problems integrating sales forces, said analysts. The company had announced 17,000 layoffs worldwide would result from the merger, as well as facilities consolidation and closings. But the process proceeded more slowly in Europe than other areas and is only now [July 1999] nearing completion."
http://news.com.com/Compaq+still+dogged+by+Digital+transition/2100-1001_3-228056.html

In the U.S. a company can close a non-unionized plant or liquidate a division overnight, with no advance notice to employees and with no requirement for any sort of service award or early retirement. Some local governments require advance notice, but often these do not have to be made public.

That's what employers want everywhere. The question is whether the overall result is better or worse than the more rigid contract approach.