Social dialogue

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Social dialogue (or social concertation) is the process whereby social partners (trade unions and employer organisations) negotiate, often in collaboration with the government, to influence the arrangement and development of work-related issues, labour market policies, social protection, taxation or other economic policies. It is a widespread procedure to develop public policies in Western Europe in particular. [1] [2]

Contents

These can be direct relations between the social partners themselves ("bipartite") or relations between governmental authorities and the social partners ("tripartite"). To make it more clear, social dialogue can mean negotiation, consultation or simply an exchange of views between representatives of employers, workers and governments. It may consist of relations between labour and management, with or without direct government involvement. Social dialogue is a flexible tool that enables governments and employers’ and workers’ organizations to manage change and achieve economic and social goals.

Examples of social dialogue activity include mutual information, open discussion, concertation [2] (on-going tripartite dialogue), exchanges of opinions, consultation and negotiation (agreements /common opinions).

European social dialogue is enshrined in the Treaty establishing the European Community (articles 138 and 139; ex 118a and 118b) and it is promoted by the European Commission as an instrument for a better governance and promotion of social and economic reforms.

Definition

According to the ILO's definition, it means the practice of tripartism between governments and the representative organizations of workers and employers within and across borders are now more relevant to achieving solutions and to building up social cohesion and the rule of law through, among other means, international labor standards. [3]

Purpose

The aim of social dialogue is to advance opportunities for women and men to obtain decent and productive work in conditions of freedom, equality, security and human dignity.

Enabling conditions

Social dialogue includes all types of negotiation, consultation and exchange of information between, or among, representatives of governments, employers and workers on issues of common interest [4]

1. Respect for the fundamental rights of freedom of association and collective bargaining.

2. Strong, independent workers' and employers' organizations with the technical capacity and knowledge required to participate in social dialogue.

3. Political will and commitment to engage in social dialogue on the part of all parties.

4. Appropriate institutional support. [5]

Means

1. Information sharing:

The inevitable foundation of effective social dialogue is to share information. Even if it doesn’t include discussion or real action, it still have its meaning.

2. Consultation:

Consultation exceeds information sharing, it needs exchanging perspective, opinion, ideas, and forms a deep conversation.

3. Negotiation/Conclude convention:

Some members need to be authorized to form the binding conventions.

4. Collective bargaining:

Collective bargaining is not only the inseparable form in social dialogue, but also be widely used. In every country, Collective bargaining is an indicator to identify the ability of social dialogue’s level.

The dilemma of pushing

Social dialogue faced challenge in some countries. Take Croatia for example, government and social partner couldn’t have consensus on adoption to overcome economic crisis in terms of public cost decrease and job saving through bargaining in several months.

The difference in nations

Social dialogue may take place at different levels and in various form, depending on national circumstances.

France

Social dialogue in France was hard to be national because of the political opposite in groups of social partner. Except for collective bargaining, it highlighted the discussion in tripartism on the issues of employment policy and human resource development. Employment committee in France proceeded consultation and participation of policy establishment on the issues of promoting employment and job training.

Germany

Because of the high coverage rate of unions and employers’ groups in Germany, and less of problems in political and ideological conflicts, social dialogue in national level elaborated higher influence on establishment of national policies. Except for job training and employment security, it also emphasized bargaining and negotiation in work conditions, including shortening of work hours and wage increase.

Austria, Denmark, Ireland and the Netherlands

When European Union (EU) suffered from the high rate of unemployment, there was brilliant performances in terms of macroeconomic development and employment rate in Austria, Denmark, Ireland and the Netherlands at the 1990s. Take 2001 for example, the unemployment rate of other 15 countries in EU was up to 7.4 percent. On the contrary, the unemployment rate of these four countries was merely 3.5 percent. ILO thought that the main reason of these four countries’ success was social dialogue, macroeconomic policies and labor market policies. For instance, the Wassenaar Agreement signed in the Netherlands in 1982, and Denmark advocated the national recovery program with Ireland in 1987. These agreements stood for the will of social partner to solve economic dilemma.

See also

Related Research Articles

<span class="mw-page-title-main">International Labour Organization</span> Specialized agency of the United Nations

The International Labor Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labor standards. Founded in October 1919 under the League of Nations, it is one of the first and oldest specialised agencies of the UN. The ILO has 187 member states: 186 out of 193 UN member states plus the Cook Islands. It is headquartered in Geneva, Switzerland, with around 40 field offices around the world, and employs some 3,381 staff across 107 nations, of whom 1,698 work in technical cooperation programmes and projects.

<span class="mw-page-title-main">Labour economics</span> Study of the markets for wage labour

Labour economics, or labor economics, seeks to understand the functioning and dynamics of the markets for wage labour. Labour is a commodity that is supplied by labourers, usually in exchange for a wage paid by demanding firms. Because these labourers exist as parts of a social, institutional, or political system, labour economics must also account for social, cultural and political variables.

Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.

Finnish national income policy agreements or comprehensive income policy agreements are tripartite agreements between Finnish trade unions, employers' organizations, and the Finnish government. They are policy documents covering a wide range of economic and political issues, such as salaries, taxation, pensions, unemployment benefits, and housing costs. They represent collective bargaining taken to its logical maximum, reaching virtually all wage-earners. Their enforcement is made easier by the universal validity of collective labour agreements. However, they are voluntary agreements and are not considered government legislation, i.e. they do not represent central planning of the economy.

Labor rights or workers' rights are both legal rights and human rights relating to labor relations between workers and employers. These rights are codified in national and international labor and employment law. In general, these rights influence working conditions in the relations of employment. One of the most prominent is the right to freedom of association, otherwise known as the right to organize. Workers organized in trade unions exercise the right to collective bargaining to improve working conditions.

<span class="mw-page-title-main">European Trade Union Confederation</span> European union federation

The European Trade Union Confederation (ETUC) is the major trade union organisation representing workers at the European level. In its role as a European social partner, the ETUC works both in a consulting role with the European Commission and negotiates agreements and work programmes with European employers. It coordinates the national and sectoral policies of its affiliates on social and economic matters, particularly in the framework of the EU institutional processes, including European economic governance and the EU Semester.

Social partners are groups that cooperate in working relationships to achieve a mutually agreed-upon goal, typically for the benefit of all involved groups. Examples of social partners include employers, employees, trade unions, and governments.

Social partnership is the term used for the tripartite, triennial national pay agreements reached in Ireland.

<span class="mw-page-title-main">Decent work</span>

Decent work is employment that "respects the fundamental rights of the human person as well as the rights of workers in terms of conditions of work safety and remuneration. ... respect for the physical and mental integrity of the worker in the exercise of his/her employment."

An employers' organization or employers' association is a collective organization of manufacturers, retailers, or other employers of wage labor. Employers' organizations seek to coordinate the behavior of their member companies in matters of mutual interest, such as during negotiations with trade unions or government bodies. Employers' organizations operate like trade unions and promote the economic and social interests of its member organisations.

<span class="mw-page-title-main">European Metalworkers' Federation</span>

The European Metalworkers' Federation (EMF), founded in 1971, is a federation of 68 metalworkers' unions from 31 countries, representing a combined total of 6.5 million affiliates. It is based in Brussels, Belgium, the general secretary is Ulrich Eckelman and Bart Samyn is the Deputy General Secretary. The organisation was dissolved on 15 May 2012, to become a part - together with EMCEF and ETUF-TCL - of the newly created organisation industriAll European Trade Union on 16 May 2012

<span class="mw-page-title-main">Labor relations</span> Study of work and workers

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A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company that regulates the terms and conditions of employees at work. This includes regulating the wages, benefits, and duties of the employees and the duties and responsibilities of the employer or employers and often includes rules for a dispute resolution process.

<span class="mw-page-title-main">Insider-outsider theory of employment</span> Theory of labor economics

The insider-outsider theory is a theory of labor economics that explains how firm behavior, national welfare, and wage negotiations are affected by a group in a more privileged position. The theory was developed by Assar Lindbeck and Dennis Snower in a series of publications beginning in 1984.

<span class="mw-page-title-main">Thorn Ministry</span>

The Thorn Ministry was the government of Luxembourg between 15 June 1974 and 16 July 1979. It was led by, and named after, Prime Minister Gaston Thorn. Throughout the ministry, Thorn's Democratic Party formed a coalition with the Luxembourg Socialist Workers' Party (LSAP). At first, the Deputy Prime Minister was Raymond Vouel, but he left to become European Commissioner in 1976, and was replaced by Bernard Berg.

Tripartism is an economic system of neo-corporatism based on a mixed economy and tripartite contracts between employers' organizations, trade unions, and the government of a country. Each is to act as a social partner to create economic policy through cooperation, consultation, negotiation, and compromise. In Tripartism, the government has a large role in the economy and engages in negotiations between labor unions and business interest groups to establish economic policy.

European labour law regulates basic transnational standards of employment and partnership at work in the European Union and countries adhering to the European Convention on Human Rights. In setting regulatory floors to competition for job-creating investment within the Union, and in promoting a degree of employee consultation in the workplace, European labour law is viewed as a pillar of the "European social model". Despite wide variation in employment protection and related welfare provision between member states, a contrast is typically drawn with conditions in the United States.

International labour law is the body of rules spanning public and private international law which concern the rights and duties of employees, employers, trade unions and governments in regulating Work and the workplace. The International Labour Organization and the World Trade Organization have been the main international bodies involved in reforming labour markets. The International Monetary Fund and the World Bank have indirectly driven changes in labour policy by demanding structural adjustment conditions for receiving loans or grants. Issues regarding Conflict of laws arise, determined by national courts, when people work in more than one country, and supra-national bodies, particularly in the law of the European Union, have a growing body of rules regarding labour rights.

The National Trades Union Congress (NTUC) spearheads the labour movement of Singapore, which represents almost a million workers in the country across more than 70 unions, affiliated associations and related organisations. Singapore runs on a tripartism model which aims to offers competitive advantages for the country by promoting economic competitiveness, harmonious government-labour-management relations and the overall progress of the nation.

References

  1. Baccaro & Simoni (2008). "Policy Concertation in Europe". Comparative Political Studies. 41 (10): 1323–1348. CiteSeerX   10.1.1.475.2984 . doi:10.1177/0010414008315861.
  2. 1 2 Afonso, Alexandre (2013-01-01). Social Concertation in Times of Austerity. Amsterdam University Press. doi:10.26530/OAPEN_442727. ISBN   9789089643957.
  3. ILO Declaration on Social Justice for a Fair Globalization
  4. Ishikawa,2003
  5. International labor organization official website social dialogue