In the 1990s, the transition from various forms of socialism and communism to a market economy and political democracy was a contentious topic of debate in both the post-socialist world and the Western development agencies such as the World Bank. The possibility of workplace democracy replacing the conventional employer-employee relationship in the post-socialist transition was a particularly contested topic. The paper shows how the debate developed in the West, which came to oppose any use of the transitional opportunity to further workplace democracy despite its alleged commitment to democratic ideals.