Thursday, June 04, 2009

[IWS] ILO: SOCIAL DIALOGUE IN TIMES OF CRISIS: FINDING BETTER SOLUTIONS [May 2009]

IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations
-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor
---------------------- Stuart Basefsky
New York, NY 10016
-------------------------------Director, IWS News Bureau
________________________________________________________________________

International Labour Office (ILO)
Industrial and Employment Relations Department
DIALOGUE Working Paper No. 1

Social dialogue in times of crisis: Finding better solutions [May 2009]
Ludek Rychly
http://www.ilo.org/public/english/dialogue/ifpdial/downloads/papers/crisis.pdf
[full-text, 76 pages]

[excerpt from forward]
The current global financial and economic crisis presents a serious test for governments
and social partners throughout the world. Its consequences for both employers and
workers are heavy and require urgent measures which take into account the vital interests
of the population. In these critical circumstances, various forms of dialogue, from simple
exchange of information or consultations to full-fledged negotiations, are badly needed,
as these can contribute to better, more transparent and more efficient governance. More
than ever, mutual trust and cooperation are prerequisites for achieving effective, balanced
and viable policies.

We have learned from past experience that the important role of social dialogue
should never be taken for granted, not even in countries with old traditions of industrial
relations. Strong political will is required to use the existing instruments of dialogue
during crisis conditions, adapting them if necessary. At the national level, social dialogue
can be very useful in finding the necessary balance between macroeconomic stability,
employment growth and the protection of the most vulnerable sectors. At the enterprise
level, the compromises may be even more painful, as workers' jobs and wages are at
stake.

This paper has three objectives. First, it looks at past crises to identify lessons that
can be learned from industrial relations developments in different regions and varying
circumstances. Second, it describes the development of social dialogue in the early period
of the current crisis in order to inform the reader about the forms and content of crisisrelated
social dialogue in different parts of the world and to provide national examples.
Third, it suggests some policy options.

This paper was prepared with the intention of providing this information as early in
the crisis as possible. It is therefore based on relatively disparate sources, and many of the
findings and conclusions are, at this stage, only tentative and may be corrected by further
developments.

CONTENTS
Foreword......................................................................................................................... iii
Introduction ...................................................................................................................... 1
1. Past experience........................................................................................................... 1
1.1. The recession of the 1970s-80s in industrialized economies ........................... 1
1.2. The Asian financial crisis of 1997-98 .............................................................. 6
1.3. The economic recession in some African countries in the 1980s .................... 8
1.4. Economic crises in Latin America since the 1970s.......................................... 9
1.5. Economic challenges in Central Europe in the early 1990s........................... 11
2. Recent developments ............................................................................................... 12
2.1. Acceleration of national-level social dialogue ............................................... 12
2.2. Limited number of comprehensive tripartite agreements............................... 18
2.3. The crucial role of public policies supporting
crisis-related social dialogue .......................................................................... 19
2.4. Mixed picture of enterprise-level collective bargaining................................. 21
3. Conclusions and policy options ............................................................................... 25
3.1. General considerations ................................................................................... 25
3.2. Lessons from the past and the current crisis................................................... 26
3.3. Policy options................................................................................................. 27
Bibliography................................................................................................................... 29
Annex I. National-level cases, 2008-09 .................................................................... 33
Annex II. Enterprise-level cases, 2008-09 ................................................................ 45


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Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
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