A fragile triangle: collective bargaining systems, trade unions and the state in the EU

Abstract

The weakening of collective bargaining systems has been one of the top priorities within the so-called “new economic governance” at EU level over the past decade. Based on the Stability and Growth Pact and its tightening in the course of the Euro zone crisis, decentralisation and fragmentation of collective bargaining geared to promote labour cost-based competitiveness has become common standard in the “country-specific recommendations” within the “European Semester”. This approach has been pushed forward most vigorously in Southern Europe. Quite surprisingly, however, the outcomes of these attacks differ substantially across countries. The paper describes the different dynamics of collective bargaining systems in Spain, Italy and Greece over recent years and gives some tentative explanations for these differences, pointing primarily at contrasting trade union approaches. Further, the paper addresses the potentials of the state at national and EU levels to act as a stabilizer, rather than a driver of weakening collective bargaining systems. Given the stark contrasts in industrial relations practices across EU countries, it suggests practical steps to be taken towards a turnaround in EU policy approaches to collective bargaining within the framework of the “European Semester”, following the logic of an enabling state aimed at fostering social equity.