Social Europe

  • EU Forward Project
  • YouTube
  • Podcast
  • Books
  • Newsletter
  • Membership

Social dialogue: an opportunity in the midst of crisis

Veronica Nilsson 20th October 2020

Some claim social dialogue is a luxury in a crisis when quick decisions are needed. On the contrary, the pandemic has proved.

social dialogue
Veronica Nilsson

Despite the difficulties many of us have experienced this year, the crisis has also brought opportunities, including a re-examination of the way we work. 

The 2020 Global Deal flagship report, ‘Social Dialogue, Skills and Covid-19’, just published, documents extensively how social dialogue has proved a key tool in addressing the damage wrought on labour markets by the pandemic—and shows how we can better prepare for changes in the post-pandemic world of work.

Central role

Social dialogue played a central role in shaping those agreements which prevented the sudden lockdown of major parts of our economies from translating into an even bigger crisis. In several countries, deals were struck whereby business refrained from firing workers, trade unions accepted reduced working hours and lower monthly wages, and governments stepped in financially to make up part of the difference in the initial wage. Social dialogue on short-time working schemes acted as a crisis circuit-breaker, by preventing massive job destruction and thus avoiding further knock-on effects on aggregate demand—which would otherwise undoubtedly have deepened the crisis.

Social dialogue has also been frequently used in the negotiation of numerous guidelines and protocols, on measures to be taken to keep the virus from spreading through workplaces. One among many examples in the flagship report is from Italy, where an 18-hour negotiation round between social partners in early March was able to avoid a proliferation of strikes linked to workers’ concerns about the risk of getting infected at work. From car factories in the United States, to retail stores in Austria, to global companies such as Telefonica, many similar agreements have been struck—all with the key objective of agreeing measures to contain the pandemic in the workplace. 

Social dialogue has moreover allowed businesses to achieve flexibility in working time. An interesting practice in France is ‘bargaining under the shadow of labour law’. A labour-law reform provided more leeway for management to decide staff holidays but only if a collective agreement allowed it to do so. As a result, a range of company and sector agreements were made, whereby flexibility in working time in the post-lockdown phase was reconciled with more job and financial security for workers during the lockdown.  

Social dialogue has further been utilised to improve global supply chains. With international buyers abruptly cancelling orders, the vulnerability of those supply chains primarily based on squeezing wages, with razor-thin margins and no buffers to withstand shocks, was clearly revealed. To build more resilient supply chains, business, trade unions, governments and international organisations joined forces at the end of April, issuing a ‘call for action in the global garment industry’. The key idea was to mobilise funds to finance systems of social protection while also ensuring business continuity, with brands and retailers committing to pay producers for finished goods and goods in production and considering direct supports to factories in their supply chains.

Trust, fairness, voice

So why, in these tough times, are numerous economies embracing such intense social dialogue? As the Global Deal report describes, social dialogue presents advantages which are of particular interest when it comes to managing crises. The key words are trust, fairness and workers’ voice.

Trust between labour-market stakeholders makes a big difference. Lack of trust obstructs the whole process of dialogue, as doubts may arise as to whether others will effectively honour any bargain struck. Social dialogue helps build that trust. By regularly meeting up to discuss and manage problems which arise in the company or the economy at large, the different stakeholders (employers and their organisations, trade unions, governments) improve their mutual understanding of the problems each side is facing. Hence, when a crisis strikes, the existence of sufficient social trust ensures a consensus can be secured more readily. 

Policy responses to a crisis are also more easily reached when efforts are broad and fairly shared. Social dialogue works as a co-ordination instrument committing all actors involved to pursue similar action and behaviour. In the case of short-time work for example, cutting working hours and giving up (part of) monthly revenue is more likely to be accepted if workers know that there are no ‘freeriders’ and that efforts necessary to save jobs and businesses will be shared by all.  

Social dialogue moreover overcomes the difficulties individual workers may have in raising their concerns, by providing a collective voice, at the level of the company and that of the wider economy. This has turned out to be crucial during the pandemic. 

At the macroeconomic scale, social dialogue has enabled a timely reaction to the pandemic, moving beyond existing health-and-safety regulations through the conclusion of special codes and protocols. Within the company, it has provided a channel of communication through which workers and management can discuss the implementation and effective enforcement of these general safety measures.

In this way, social dialogue gives workers the confidence that they and their families will not be exposed to unnecessary risk. In turn, business and society also gain, as the reopening of the economy is greatly facilitated by a smoother return to workplaces. This encapsulates the ‘win-win-win’ situation social dialogue engenders.

Important responses

Social dialogue is sometimes misrepresented as theoretically desirable but practically difficult, since purportedly crises demand quick responses. The experience of recent months however shows the opposite. Social dialogue has come to the fore on many occasions, delivering important policy responses to the different labour-market challenges triggered by the pandemic. 

As a multitude of evidence in the Global Deal flagship report testifies, this is not a coincidence but the result of structural characteristics of the process and institutions of social dialogue. Strengthening social dialogue should therefore be a key part of the blueprint to rebuild labour markets. 

Pics 2
Veronica Nilsson

Veronica Nilsson is General Secretary of the Trade Union Advisory Committee to the OECD (TUAC).

Harvard University Press Advertisement

Social Europe Ad - Promoting European social policies

We need your help.

Support Social Europe for less than €5 per month and help keep our content freely accessible to everyone. Your support empowers independent publishing and drives the conversations that matter. Thank you very much!

Social Europe Membership

Click here to become a member

Most Recent Articles

u42198346741 4727 89fd 94e15c3ad1d4 3 Europe Must Prepare for Security Without AmericaAlmut Möller
6ybe7j6ybe Why Real Democracy Needs Conflict, Not ConsensusJustus Seuferle
u4219837 46fc 46e5 a3c1 4f548d13b084 2 Europe’s Bid for Autonomy: The Euro’s Evolving Global RoleGuido Montani
u42198346 cb576e6b422c 2 Navigating Uncertainty: Germany’s SPD Grapples with Its FutureRobert Misik
u421983467355abbec437 2 The War on the Liberal ClassDavid Klion

Most Popular Articles

u4219834647f 0894ae7ca865 3 Europe’s Businesses Face a Quiet Takeover as US Investors CapitaliseTej Gonza and Timothée Duverger
u4219834674930082ba55 0 Portugal’s Political Earthquake: Centrist Grip Crumbles, Right AscendsEmanuel Ferreira
u421983467e58be8 81f2 4326 80f2 d452cfe9031e 1 “The Universities Are the Enemy”: Why Europe Must Act NowBartosz Rydliński
u42198346761805ea24 2 Trump’s ‘Golden Era’ Fades as European Allies Face Harsh New RealityFerenc Németh and Peter Kreko
startupsgovernment e1744799195663 Governments Are Not StartupsMariana Mazzucato
u421986cbef 2549 4e0c b6c4 b5bb01362b52 0 American SuicideJoschka Fischer
u42198346769d6584 1580 41fe 8c7d 3b9398aa5ec5 1 Why Trump Keeps Winning: The Truth No One AdmitsBo Rothstein
u421983467 a350a084 b098 4970 9834 739dc11b73a5 1 America Is About to Become the Next BrexitJ Bradford DeLong
u4219834676ba1b3a2 b4e1 4c79 960b 6770c60533fa 1 The End of the ‘West’ and Europe’s FutureGuillaume Duval
u421983462e c2ec 4dd2 90a4 b9cfb6856465 1 The Transatlantic Alliance Is Dying—What Comes Next for Europe?Frank Hoffer

Foundation for European Progressive Studies Advertisement

Spring Issues

The Spring issue of The Progressive Post is out!


Since President Trump’s inauguration, the US – hitherto the cornerstone of Western security – is destabilising the world order it helped to build. The US security umbrella is apparently closing on Europe, Ukraine finds itself less and less protected, and the traditional defender of free trade is now shutting the door to foreign goods, sending stock markets on a rollercoaster. How will the European Union respond to this dramatic landscape change? .


Among this issue’s highlights, we discuss European defence strategies, assess how the US president's recent announcements will impact international trade and explore the risks  and opportunities that algorithms pose for workers.


READ THE MAGAZINE

Hans Böckler Stiftung Advertisement

WSI Report

WSI Minimum Wage Report 2025

The trend towards significant nominal minimum wage increases is continuing this year. In view of falling inflation rates, this translates into a sizeable increase in purchasing power for minimum wage earners in most European countries. The background to this is the implementation of the European Minimum Wage Directive, which has led to a reorientation of minimum wage policy in many countries and is thus boosting the dynamics of minimum wages. Most EU countries are now following the reference values for adequate minimum wages enshrined in the directive, which are 60% of the median wage or 50 % of the average wage. However, for Germany, a structural increase is still necessary to make progress towards an adequate minimum wage.

DOWNLOAD HERE

S&D Group in the European Parliament advertisement

Cohesion Policy

S&D Position Paper on Cohesion Policy post-2027: a resilient future for European territorial equity

Cohesion Policy aims to promote harmonious development and reduce economic, social and territorial disparities between the regions of the Union, and the backwardness of the least favoured regions with a particular focus on rural areas, areas affected by industrial transition and regions suffering from severe and permanent natural or demographic handicaps, such as outermost regions, regions with very low population density, islands, cross-border and mountain regions.

READ THE FULL POSITION PAPER HERE

ETUI advertisement

HESA Magazine Cover

With a comprehensive set of relevant indicators, presented in 85 graphs and tables, the 2025 Benchmarking Working Europe report examines how EU policies can reconcile economic, social and environmental goals to ensure long-term competitiveness. Considered a key reference, this publication is an invaluable resource for supporting European social dialogue.

DOWNLOAD HERE

Eurofound advertisement

Ageing workforce
How are minimum wage levels changing in Europe?

In a new Eurofound Talks podcast episode, host Mary McCaughey speaks with Eurofound expert Carlos Vacas Soriano about recent changes to minimum wages in Europe and their implications.

Listeners can delve into the intricacies of Europe's minimum wage dynamics and the driving factors behind these shifts. The conversation also highlights the broader effects of minimum wage changes on income inequality and gender equality.

Listen to the episode for free. Also make sure to subscribe to Eurofound Talks so you don’t miss an episode!

LISTEN NOW

Social Europe

Our Mission

Team

Article Submission

Advertisements

Membership

Social Europe Archives

Themes Archive

Politics Archive

Economy Archive

Society Archive

Ecology Archive

Miscellaneous

RSS Feed

Legal Disclosure

Privacy Policy

Copyright

Social Europe ISSN 2628-7641