In recent months, social dialogue in Poland has increasingly become a political issue, which could seriously diminish the likelihood of achieving a collective agreement. This issue has been particularly prevalent in central areas, although other regions are taking part in the debate. One of the main reasons for this increased interest is the upcoming general elections, which are encouraging political leaders to seek allies among the social partners.
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In recent months, social dialogue in Poland has increasingly become a political issue, which could seriously diminish the likelihood of achieving a collective agreement. This issue has been particularly prevalent in central areas, although other regions are taking part in the debate. One of the main reasons for this increased interest is the upcoming general elections, which are encouraging political leaders to seek allies among the social partners.
Achievements of social dialogue
The fourth term of office of the Sejm (parliament), which ends in Autumn, has been very much dominated by left-wing parties and post-communists, mostly of the Democratic Left Alliance (Sojusz Lewicy Demokratycznej, SLD). To date, the achievements of the 2001-2004 government in the area of social dialogue have been relatively positive. The most important achievements during this period were:
The implementation of the Trilateral Commission for Social and Economic Affairs, (Trójstronna Komisja ds. Społeczno-Gospodarczych, TK) and the Voivodeship Commissions of Social Dialogue Act (Wojewódzkie komisje dialogu społecznego, WKDS) in July 2001. Also, subsequent amendments, which facilitated and strengthened the TK and WKDS actions (PL0210106F, PL0502105F).
In July 2002 - after consultations with social partners - a package of amendments was passed, making the Labour Code more flexible (PL0212108F).
In October 2002, the Minimum Pay Act was passed (PL0211109F, PL0504103S).
The improvement of regulations that had been enforced since 1994, in order to provide a legal basis for consultation, opinion-making and advisory bodies of the Ministry of Health (Ministerstwo Zdrowia, MZ) (The Supreme Board of Employment), Voivodeship Marshals (The Voivodeship Boards of Employment) and the mayors (The Poviat Boards of Employment) (PL0405105F). The boards, which deal with labour market policy, currently operate according to the Employment Promotion and Labour Market Institutions Act, dated April 2004.
Initiating the creation of regional committees that managed and monitored the voivodeship contracts, based on the National Development Plan, dated April 2004. These consultation institutions, where social partners are also represented, are supposed to result in effective execution of voivodeship contracts within the Integrated Regional Development Programme, (Zintegrowany Program Rozwoju Regionalnego, ZPORR).
In July 2004, the much awaited Business Freedom Act was passed, in consultation with the social partners and the majority of employers’ organisations (PL0410109F).
The founding of new participation structures - the social voivodeship boards in the National Health Fund (Narodowy Fundusz Zdrowia, NFZ) units - by virtue of the Public Healthcare Benefit Funds Act, dated August 2004.
These measures were implemented, mainly due to the informal 'political truce' that was in force during the three years of social dialogue. Although this truce produced results, it has unfortunately been breached in recent times.
Ministry of Labour reshuffle
By late 2004, the impact of this diminishing political truce was reflected in the changes made to personnel within the Ministry of Labour. These changes were triggered by the decision to relocate the Undersecretary of State, who had been in charge of social dialogue and who had initiated many positive undertakings in this area. Apart from his expertise in industrial relations, he was also fully committed to social dialogue, unlike his successor. Less attention has been devoted, therefore, to the professional skills and competencies of deputy ministers responsible for social dialogue. With more expertise in the field of law, it is nevertheless significant that the new Undersecretary has long associations with the Polish Confederation of Private Employers Lewiatan (Polska Konfederacja Pracodawców Prywatnych 'Lewiatan', PKPP), where he worked as an expert and was director of the social dialogue and labour relations department. This could raise questions about the objectivity of his appointment or even suspicions about a conflict of interest.
The reshuffle seems to be a reflection of the weakening parliamentary back-up of the left-wing government and the more complex structure of political connections within the minority government. Indisputably, the recent personnel decisions were more than an act of kindness to the newly-established Democratic Party (Partia Demokratyczna, PD), with which the Prime Minister is currently identifying himself. The nomination of the new Undersecretary of State may, for example, have resulted from the fact that the PD’s presidential candidate is the head of PKPP and the new Undersecretary’s former superior.
Political links and alliances among social partners
The PD candidate is not the only representative of employer organisations who wishes to return to the political track. Within the same PKPP party, the deputy and vice-president of the Polish Business Council (Polskia Rada Biznesu, PRB) has suspended his function to devote himself to politics. He is also an MP candidate of the Civic Platform (Platforma Obywatelska, PO) party. The head of the Business Centre Club, BCC ZP (PL0505102F) has also expressed an interest in politics. Trade unions too are looking to politics. It came as no surprise, for example, that the All-Poland Alliance of Trade Unions (Ogólnopolskie Porozumienie Związków Zawodowych, OPZZ) made a pre-election deal with the Democratic Left Alliance. The SLD, which is very low in the polls at present, has made far-reaching concessions, including an agreement to place OPZZ members on top of the election lists in some constituencies. Conversely, in the independent and self-governing trade union, Solidarnosc (Niezależny Samorządny Związek Zawodowy Solidarność, NSZZ Solidarność), some have opted for partnerships with the right-wing parties, Civic Platform and Law and Justice (Prawo i Sprawiedliwość, PiS), as well as the radical and euro-skeptical Polish Families League (Liga Polskich Rodzin, LPR). The pre-election alliance with PiS has won the greatest support.
Trade union demonstration
In 2004 and 2005, the effectiveness of the Trilateral Commission has become visibly weaker. The turning point, when deteriorating cooperation was finally replaced by political confrontation, was the OPZZ demonstration in May, which took place in front of the PKPP headquarters. This action was unprecedented, as trade unions never previously organised demonstrations outside the premises of employer organisations. The direct cause of the demonstration was PKPP’s vetoing of a decision to set the current year’s pay increase indicator at 5.14% - a move which had been apparently approved by three other employer organisations. The PKPP’s veto led to the approval of the government’s initial indicator proposal, which was 4.5%.
Social dialogue paralysed in regions
In voivodeship commissions of social dialogue - the regional equivalent of the trilateral commission - everyone is now awaiting the Autumn general elections and the subsequent exchange of government and voivodeship authorities. Unlike TK, however, the WKDS are quadrilateral, not trilateral, and for this reason they include the representatives of political opposition to the incumbent government, representing the voivodeship marshals. The WKDS membership is used by some to criticise the voivodeship authorities and regional policies, and to run their own election campaigns; in some regions, the WKDS debates are lively and get picked up by the media. As a result, social dialogue in many regions has been paralysed because of anticipation of the general elections.
Commentary
The end of this parliament’s term of office sees social dialogue participants revert back to their original political strategies, previously used in different coalitions and variations since the political and economic transformation began in 1989. The renewed political impact of the dialogue is no surprise, although it is disappointing, as hopes were high for a division of industrial relations from politics for once and for all; however, this has not been the case. It is nevertheless possible that the progress of formal and legal institutionalisation of social dialogue will slowly but steadily distance industrial relations from the political games arena. (Jacek Sroka, Institute of Public Affairs (Instytut Spraw Publicznych, ISP) and Wrocław University (Uniwersytet Wrocławski, UWr))
Eurofound recommends citing this publication in the following way.
Eurofound (2005), Social dialogue takes political swing, article.
