Denmark:the long-lasting class compromise

Purpose The purpose of this paper is to offer a critical examination of industrial relations in Denmark. Design/methodology/approach The approach is based upon available data and a mixture of Marxist theory and systems theory. The theoretical position is discussed in relation to the academic discourses on the main characteristics of Danish industrial relations and provides a review of the foundation and historical development of the Danish system. Findings From this basis, it is analysed how the stagnation or decline has taken place in recent years regarding representation of workers’ interest as well as the ability of the Danish system to maintain its key importance when challenged by decentralisation, decreasing union affiliation rates, cuts in unemployment insurance and social dumping due to labour migration. Originality/value It is an original paper which offers a critical analysis of the institutional decline and increasing inequality that are the result of the liberalist political-economic hegemony. </jats:sec