Why Don’t Governments Need Trade Unions Anymore? The Death Of Social Pacts In Ireland And Italy

TitleWhy Don’t Governments Need Trade Unions Anymore? The Death Of Social Pacts In Ireland And Italy
Publication TypeJournal Article
Year of Publication2014
AuthorsCulpepper, Pepper D., and Regan, Aidan
JournalSocio-Economic Review
Volume12
Issue4
Pagination723 - 745
Date Published2014///
KeywordsEurope, industrial relations, political economy, public policy, trade unions, tripartite institutions
Abstract

During the 1990s, a prominent strategy of economic adjustment to the challenges of competitiveness and budgetary retrenchment among the non-corporatist countries of Europe was the negotiation of social pacts. Since the onset of the great recession and the Eurozone crisis, social pacts have been conspicuous by their absence. Why have unions not been invited into government buildings to negotiate paths of eco- nomic adjustment in the countries hardest hit by the crisis? Drawing on empirical experiences from Ireland and Italy—two cases on which much of the social pact litera- ture concentrated—this article attributes the exclusion of unions to their declining legitimacy. Unions in the new European periphery have lost the capacity either to threaten governments with the stick of protest or to seduce policymakers with the carrot of problem-solving. They are now seen as a narrow interest group like any other.

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