Social dialogue: defending democracy in practice

In the face of the threat from the far right, trade unions represent democracy’s strongest supporters.

The European Parliament elections last month provided a platform for the far right and its anti-democratic agenda. Wherever the far right gets into power, workers’ fundamental rights and their unions are at risk. This trend can also be seen at national level, with trade unions undermined and attacked by political actors who see unions, collective bargaining and social dialogue as obstacles to their aims.

Social dialogue is needed more than ever to safeguard and improve our democracies and welfare models. Whereas the far right seeks to centralise and monopolise power, trade unions, through social dialogue and collective bargaining, empower workers at all levels—from the shop floor to the hallways of the European institutions. Social dialogue is a joint commitment to the foundations of democracy and the sharing of power.  

When people experience democracy, they truly grasp its importance. By getting together to pursue common interests—finding the right balance of priorities on which to bargain and, where necessary, taking collective action and making the necessary concessions to reach compromises—workers embed democratic practice in everyday life. By identifying what unites them in their diversity, and taking action to win concrete improvements, they gain a sense of agency and control over their lives and communities.

Study after study shows that trade unionists are more likely than others to harbour pro-democratic opinions and take on active roles in contributing to civic life outside of work. Strengthening trade unionism and social dialogue is thus highly effective in protecting and strengthening democracy’s immune system. This must be the focus of European Union action for the incoming mandate.

Hard-learned lessons

Strong trade-union rights and respect for social dialogue was fundamental to mapping a way through the social and economic devastation after World War II. Having active, engaged workers, able to express their views and empowered to protect their interests through trade unions, was seen as necessary to rebuild Europe’s societies and economies, thereby strengthening its democracies. These hard-learned lessons still apply today.

Our democracies are predicated on trade unions keeping governments and companies in check, through social dialogue and collective bargaining. The fair redistribution of wealth and productivity—made possible through collective bargaining—is a condition for sustainable growth and safe and peaceful societies. Most policy-makers today have once again become aware of the threat coming from unfettered capitalism, yet they have been inconsistent in countering it. Real wages are falling while companies profits are rising, despite unions’ best efforts. More needs to be done to ensure a fair distribution of the value workers create.

After decades of the practice of neoliberal ideas we know the protection of society cannot be delegated to the ‘invisible (and unaccountable) hand’ of the market. One way to regulate it is through direct intervention by the state. Governments passing laws may provide a degree of accountability but real results will depend on how social partners are involved.

A more effective approach is intervention by the actors in the labour market themselves: capital and labour, employers’ organisations and trade unions. Self-regulation through collective agreements provides a democratic, efficient and dynamic way to improve working conditions. EU member states have recognised the fundamental importance of collective bargaining in the directive on adequate minimum wages and the recommendation on strengthening social dialogue.

Powerful tool

At EU level there is a well-developed system of social dialogue. European social partners have the potential to regulate labour markets through binding agreements. These can be implemented in the form of an EU directive if the signatories so wish, replacing the role of lawmakers, making this a powerful tool to approach issues on the European labour market.

Given their mutual interest and democratic legitimacy, one might have thought labour-market regulation at European level would be dominated by laws negotiated and agreed by the social partners—laws precisely tuned to the needs of companies and workers. Regrettably, this is not the case. It has been 25 years since the European social partners were able to negotiate an agreement at cross-industry level implemented via a directive.

One explanation is the rise of neoliberalism under José Manuel Barroso’s presidency of the European Commission, which downgraded the ‘social Europe’ associated with his predecessor Jacques Delors. Against this backdrop, the tools used to tackle the aftermath of the 2008 financial crash were austerity and aggressive deregulation, including the dismantling of collective-bargaining systems and social-dialogue structures.

It is now widely recognised that Europe took a wrong turn during this period, and trade unions and other progressive forces have successfully pushed for pertinent legislation. But we must remain vigilant to avoid repetition of the mistakes of the past. And, crucially, European employers will need to show a real commitment to deliver through social dialogue, following failed negotiations on ‘telework’ and the ‘right to disconnect’.

Mutual recognition will be key. Employers who refuse to play their part in regulating the market limit the effectiveness of social dialogue and create uncertainty. Collective action and cross-border solidarity will continue to be an effective tool to encourage employers to the negotiating table. Identification of common solutions should not however depend solely on collective action or the shadow of the law. In a world of growing instability there is a strong argument for social partners to use their autonomy to the full, to provide democratic terra firma.

Through social dialogue the conditions for sustainable and competitive economies are established. Skilled workforces attracted by quality employment are an asset from which all employers benefit. Successful companies have understood this and engage in collective bargaining and social dialogue.

The Val Duchesse declaration last January provides important momentum to strengthen social dialogue and democracy. It is important that the incoming commission and the new European Parliament continue to support the social partners to deliver real results. The process, initiated by the commission president, Ursula von der Leyen, must gather pace and forge a path forward for social dialogue. The European Trade Union Confederation is committed to delivering on the EU’s ‘stronger together’ slogan by reinforcing social dialogue, together with employers.

Active role

But support for trade unions and social dialogue must not be restricted to the European level. Unions provide an active role for workers to improve their own working conditions and to support others to do the same through solidarity. The dynamic, efficient and fair way that social dialogue addresses conflicting interests needs to be safeguarded. Without it we run the risk that unresolved conflicts take root, exacerbating unfairness and leading to economic, social and political instability.

The momentum created by positive social developments at European level must not be lost in the face of the threat posed by far-right forces. The British prime minister and neoliberal outrider Margaret Thatcher told the world there were no alternatives. Social dialogue shows that there are many alternatives—that the future is open and that there is hope.

Now is the time to stand firm and commit to our democratic values. That means embracing and strengthening the tools we have: the fundamental rights of association and expression, negotiation and strike. These rights provide trade unions with the ability to defend our democracy through collective self-regulation via collective bargaining and social dialogue.

The yardstick for measuring the new commission’s dedication to democracy will be its support for social dialogue—at European and national level. Practising democracy every day, not just voting every few years, is how we defend democracy. And embedding democratic rights and practice by empowering dialogue between trade unions and employers is the most successful way to protect and strengthen democracy’s defences.