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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]
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.
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]
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.
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]
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.
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.
Social dialogue may take place at different levels and in various form, depending on national circumstances. [6]
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.
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.
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.
The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labour standards. Founded in October 1919 under the League of Nations, it is one of the first and oldest specialized 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.
Labour 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.
Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.
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.
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £11.44 for over-23-year-olds from April 2023 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995. Workers must be able to vote for trustees of their occupational pensions under the Pensions Act 2004. In some enterprises, such as universities or NHS foundation trusts, staff can vote for the directors of the organisation. In enterprises with over 50 staff, workers must be negotiated with, with a view to agreement on any contract or workplace organisation changes, major economic developments or difficulties. The UK Corporate Governance Code recommends worker involvement in voting for a listed company's board of directors but does not yet follow international standards in protecting the right to vote in law. Collective bargaining, between democratically organised trade unions and the enterprise's management, has been seen as a "single channel" for individual workers to counteract the employer's abuse of power when it dismisses staff or fix the terms of work. Collective agreements are ultimately backed up by a trade union's right to strike: a fundamental requirement of democratic society in international law. Under the Trade Union and Labour Relations (Consolidation) Act 1992 strike action is protected when it is "in contemplation or furtherance of a trade dispute".
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.
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 beneft 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.
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 their 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.
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
The Prices and Incomes Accord was a series of agreements between the Australian Labor Party (ALP) and the Australian Council of Trade Unions (ACTU), in effect from 1983 to 1996. Central to these agreements was an incomes policy to address the stagflation crisis by restraining wages. The unions agreed to restrict their wage demands, and in exchange, the government provided a 'social wage' of welfare and tax cuts.
Labor relations or labor studies is a field of study that can have different meanings depending on the context in which it is used. In an international context, it is a subfield of labor history that studies the human relations with regard to work in its broadest sense and how this connects to questions of social inequality. It explicitly encompasses unregulated, historical, and non-Western forms of labor. Here, labor relations define "for or with whom one works and under what rules. These rules determine the type of work, type and amount of remuneration, working hours, degrees of physical and psychological strain, as well as the degree of freedom and autonomy associated with the work." More specifically in a North American and strictly modern context, labor relations is the study and practice of managing unionized employment situations. In academia, labor relations is frequently a sub-area within industrial relations, though scholars from many disciplines including economics, sociology, history, law, and political science also study labor unions and labor movements. In practice, labor relations is frequently a subarea within human resource management. Courses in labor relations typically cover labor history, labor law, union organizing, bargaining, contract administration, and important contemporary topics.
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.
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.
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 labour unions and business interest groups to establish economic policy.
Collective agreement coverage or union representation refers to the proportion of people in a country population whose terms and conditions at work are made by collective bargaining, between an employer and a trade union, rather than by individual contracts. This is invariably higher than the union membership rate, because collective agreements almost always protect non-members in a unionised workplace. This means that, rather than individuals who have weaker bargaining power representing themselves in negotiations, people organise to represent each other together when negotiating for better pay and conditions in their workplace. The number of people who are covered by collective agreements is higher than the number of union members, and in many cases substantially higher, because when trade unions make collective agreements they aim to cover everyone at work, even those who have not necessarily joined for membership.