Industrial Relations in Europe 2012 - European Commission - Europa

Box 2.3 Coping with the economic crisis through social pacts
Latvia (2008)
Since 2004, the Latvian government avoided state budget discussions with the social
partners, which culminated in union protests and public demonstrations in 2007. In the
context of the start of the crisis and a worsening economic situation, negotiations at the
National Tripartite Cooperation Council reconvened in 2008 to discuss the state budget for
2009. Both employers and trade unions prepared and submitted to the government concrete
proposals on how to improve the country’s economic and social situation. Despite protest
campaigns, the government, the Latvia Employers’ Confederation (Latvijas Darba
Devējukonfederācija, LDDK) and the Free Trade Union Confederation of Latvia (Latvijas
Brīvo Arodbiedrībusavienība, LBAS) signed a tripartite agreement. This experience does not
mean that tripartite negotiations will remain a standard part of Latvian policymaking, but it
demonstrates that despite the government’s earlier reluctance to negotiate and ongoing
protests, social partners were able to engage in a constructive discussion and conclude a
tripartite agreement.
Estonia (2009)
Representatives of several ministries, the Estonian Trade Union Confederation (Eesti
Ametiühingute Keskliit, EAKL) and the Estonian Employers’ Confederation (Eesti
Tööandjate Keskliit, ETK) agreed on a pact addressing economic recession. The main
purpose of the agreement was to maintain jobs and provide effective help for registered
unemployed. After the pact’s conclusion, unemployment still kept rising, which forced the
government to take further action. The Ministry of Social Affairs in cooperation with the
Estonian Unemployment Insurance Fund introduced a new national action plan for 2009–
2010, aiming at lower unemployment and support for the creation of new jobs. About €45
million were assigned for an employment programme, which should help to create over
5,000 jobs and boost the economy. This second plan was adopted with less involvement of
the social partners than the first agreement. Employers welcomed the plan but trade unions
expressed some concerns on the possible misuse of subsidies by employers.
Poland (2009)
In March 2009, Polish peak national social partners reached an autonomous agreement on
combating the negative effects of the economic slowdown. This agreement received a public
praise and was considered a success of social dialogue. The social partners’ anti-crisis
package was then presented to the government, which was to incorporate its provisions into
draft legislation and submit a legislative proposal to the parliament. In July 2009, the Polish
parliament adopted the anti-crisis legislative package with some modifications to the general
direction set out by the bipartite agreement reached by the social partners. Despite some
critique by Solidarność, social partners accepted the outcome but continued to exercise
pressure on the government to increase the efficiency of anti-crisis policy. The government
acknowledged social partner claims and amended the anti-crisis legislation in October 2010.
Changes included lowering the eligibility threshold for subsidizing the remuneration costs of
part-time employees or employees that remained idle due to a temporary crisis-induced halt
of their employer’s operation. This example documents that an initially autonomous
agreement can be upgraded to national legislation.
Slovenia (2009)
Public sector trade unions in Slovenia were engaged in bringing forth the government’s
101