Companies in Southern Europe—particularly in Spain, Italy, and Portugal—operate within institutional frameworks and cultural contexts that emphasize interpersonal trust, social dialogue, and a strong presence of family-owned small and medium-sized enterprises (SMEs). Southern European economies share historical legacies and socio-cultural norms that shape how firms organize, make decisions, and interact with workers. While heterogeneity across Spain, Italy, and Portugal is significant, recurrent patterns often stem from governance and leadership capacity, company size, and the sector in which firms operate, which determines their ability to compete in an open market. These patterns influence labour relations and workforce management. This chapter analyses the role of companies in labour relations in the region, identifying core similarities—such as relationship-centred management, corporate governance, organizational size and structure, and their impact on collective bargaining and dual labour markets—, as well as notable cross-country differences in bargaining levels, reform trajectories, and industrial structures.