In the literature on learning organisations, too little attention is paid to HRM and employee-participation. The opposite is also true, most of the debate on co-determination disregards the learning cycle as applied to works councils. This paper discusses the historic relationship between human resources management (HRM) and employee participation, situated in the Dutch ‘services industry’. Based on an evolutionary analysis of labour relations, management and organisation, the paper will address the need for an interactive relationship between HRM and employee participation, converging in the learning organisation. After comparing and weighing various roles, HRM is considered as a complex intermediary function: as a ‘knowledge broker’. This requires, on the one hand, a knowledge coalition between HRM and the works council, and, on the other hand, an employee-participation coalition between the works council and work-progress meetings.