Industrial relations and social dialogue

The main findings emerging from Eurofound research serve as input for policymakers to address some of the key issues in this area.

• The social partners, through collective bargaining, play a crucial role in safeguarding fair treatment for European workers and a stable and predictable framework for employers.
• Effective collective bargaining ensures that competition between enterprises can focus on increasing efficiency rather than exploiting labour through common rules on pay and working conditions.
• Industrial relations systems are increasingly under threat due to changes in society, labour markets and the organisation of work. This has posed challenges to the capacity of key actors in industrial relations systems in the Member States.
• In terms of pay, findings show that seven out of 10 minimum wage workers in the EU report at least some difficulty in making ends meet, as compared to less than 5 out of 10 other workers; however, these figures vary greatly across countries. Against the background of the pandemic, minimum wages can play a role in the policy mix to stabilise incomes – and thus demand – to counteract a downward spiral into recession or depression.
• Effective European social dialogue depends on strong links with the national level so the EU agenda stays relevant and EU autonomous agreements are implemented in a meaningful way at national level.
• While several joint initiatives have emerged from European social dialogue, few agreements have been concluded. There is concern in some sectors that social partner requests to implement agreements through European legislation have been rejected, and that better links between EU and national levels are required.
• Falling trends in trade union density are a matter for concern in many Member States. Fewer than one in three workplaces (with 10+ workers) in the EU (29%) has some form of employee representation. Legislative requirements are a key driver for the presence of representation.
• Collective bargaining remains at the core of industrial relations systems in the EU. Policymakers should seize the opportunity of the COVID-19 crisis to introduce new initiatives to promote, strengthen and underpin collective bargaining.
• In addition to social partner efforts, effective social dialogue and well-functioning industrial relations require public monies and the support of public authorities. Policymakers should explore new forms of knowledge transfer, resource provision and engagement with EU- and national-level social partners.
• Safeguarding and promoting fair, well-functioning and balanced industrial relations is critical to ensuring inclusive and sustainable growth and social progress in the EU. In the wake of COVID-19, it will also be an important way for policymakers to integrate the social and economic dimensions of the EU, as set out in the European Pillar of Social Rights.