From navigating the aftermath of the pandemic to tackling climate change and digitalization, Europe’s economies are facing unprecedented challenges. Sustainably transitioning into a more resilient and competitive Union requires solutions which are both robust and at the same time adaptable. A well-functioning dialogue between trade unions and employers is necessary to achieve this. We therefore call upon the Social Pillar Conference at La Hulpe on 15-16 April to send a strong message to the June European Council on the need to give space to social dialogue as a priority in the next Strategic Agenda.
The La Hulpe Social Summit: An Opportunity
In June, EU Heads of State and Government will decide on the EU's long-term priorities for the period 2024-2029, including how to strengthen the EU's global competitiveness through a sustainable and inclusive transition to a green and digital economy. Ahead of the Summit in June, the Belgian Presidency has invited key European stakeholders to La Hulpe on 15-16 April to reflect upon and adopt a declaration on the future social agenda of the European Union.
At La Hulpe, representatives from the Commission, European Parliament, Social Partners, and civil society will discuss how policies can enhance human capital development, competitiveness, and foster fair transitions.
Solutions to all these challenges require the active participation of social partners and due respect for their autonomy. When given room to maneuver, social partners have a proven track record of delivering tailored solutions that garner widespread acceptance. We've seen this in the past. We would like to see this also in the future.
Social Dialogue: A Proven Track Record
Amidst COVID and its aftermath, social dialogue shaped policies to soften its economic blow on companies and employees. It tackled labour market challenges, boosted job mobility through skill upgrades and restructuring, ensured an experienced workforce to remain available. Effective social dialogue has also delivered responses to important structural economic and social challenges.
In 2021, Spain approved a significant labour market reform through social dialogue. It seeks to boost permanent employment while allowing companies to adapt their workforce. This reform elevates collective bargaining, enabling negotiations on labour-related issues. Since the reform stems from social dialogue, it's seen as stable and likely to achieve its goals.
In Italy, amidst industrial changes, employer and union groups acknowledge the rising significance of social ties. In 2022, an innovative pact was struck in the energy sector amid its green transition. Emphasizing human value, it ensures favourable work conditions, retraining opportunities, work-life balance, and support for working parents, boosting employee involvement.
In Sweden, known for its strong tradition of labour market regulation through social dialogue, another example of negotiated solutions emerged in 2022. A significant reform, resulting from national cross-sector negotiations, enhances job security, offers retraining, and gives employer flexibility and predictability. This reform however could only come about because social partners had the room to negotiate and conclude collective agreements.
These examples demonstrate that space for collective bargaining through social dialogue is an essential tool for effective change management in a rapidly changing world.
Unlocking Social Dialogue's Potential
Despite its successes, social dialogue has yet to reach its full potential. However, there are encouraging signs. The importance of social dialogue has lately gained much needed traction. The von der Leyen Commission has repeatedly reaffirmed its commitment to social dialogue in the ongoing twin transition and several initiatives have been taken to follow up the principle on social dialogue in the Pillar of Social Rights.
The recognition by the Commission President that the future of Europe will be built with and by our social partners resonates well with calls from the European Parliament, the Council, the President of the European Council, the European Economic Social Committee and European Social Partners on strengthening social dialogue. And its success relies, as the European Parliament correctly points out, heavily on the social partners’ ability to negotiate freely. Of this follows that social partners need to have sufficient room to be able to find negotiated solutions in the first place.
A Call to Action for La Hulpe
The time to solidify these commitments is now. As the EU drafts its next strategic agenda, prioritizing space for social dialogue must be paramount. We urge the Belgian Presidency and the stakeholders convening at La Hulpe in April, to send a resounding message to the European Council in June.
Building a resilient and competitive Europe demands a negotiated effort, and social dialogue is the cornerstone upon which we can build a stronger future, together.
Peter Hellberg chairs the 'Council for Negotiation and Cooperation' (PTK), a Swedish organisation of 26 trade unions representing more than one million employees in the private sector.