Between Apprehension and Support: Social Dialogue, Democracy, and Industrial Restructuring in Central and Eastern Europe

This article explores the attitudes of trade union organizations to restructuring and privatization of their enterprises to strategic foreign investors in Central and Eastern Europe\u27s biggest steel producers: Poland, Czech Republic, Romania, and Slovakia. Contrary to advocates of insulating technocratic decision-makers from social partners, this article argues that higher quality of democracy and concomitant social dialogue carried out at the level of the sector with union organizations that are autonomous of the government in power (as was the case in the Czech Republic and Poland), are associated with greater restructuring and with support for privatization to strategic foreign investors. In these circumstances, the unions actually pressure reluctant governments to accelerate the privatization process. By contrast, politically motivated capture of individual enterprise-level unions and splitting them from sectoral-level organizations, as occurred in countries with lower quality of democracy (Romania and Slovakia), weakens the autonomous sectoral-level organizations, which are generally supportive of restructuring. Conversely, captured unions remain far more resistant to reform than their counterparts belonging to autonomous sectoral organizations. Thus, higher quality of democracy and concomitant vibrant social dialogue safeguard industrial restructuring

Social Dialogue and Trust

This article examines the role of trust in decision-making processes, which involves major interest groups, representing the world of work and business. This process is often referred to as the concept of social dialogue, which is generally defined as all forms of negotiation and consultation between the trade unions and employers and the state. In this formula, dialogue can be regarded as a mechanism of public policy making. The first part of the article is a short presentation of links between social dialogue and public policies. The second part addresses the issue of trust, which is a prerequisite for high quality and effective social dialogue. The quality and effectiveness of dialogue are correlated with the price, which participants have to pay for taking part in the dialogue and its outcomes. This is an issue of transaction costs, which are determined by “trust capital”. The third part examines contribution of trust to the cost effect of social dialogue. The study concludes with a presentation of the research, conducted among trade unionists and employers who have, inter alia, assessed the role of trust in dialogue

Between consolidation and crisis : divergent pressures and sectoral trends in Poland

This article describes the evolution of social dialogue and collective bargaining in Poland between 2008 and 2012, arguing that the effects of the crisis have been asymmetrical in two ways. First, while Poland is the only EU country to have avoided recession in macroeconomic terms, the crisis has actually disproportionately affected labour through higher unemployment and worsening employment conditions. Secondly, in a decentralized system like the Polish one, effects of the crisis have differed by sector. Sectors exposed to international competition such as the automotive and steel sectors have suffered from job losses and major restructuring, while services and construction have withstood better. While social dialogue has been temporarily re-legitimized during the crisis, it plays only a sporadic role