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Abstract:
Tripartite concertation, which has reappeared in several European countries, plays an important role in the current process of welfare reform. This article discusses the need to combine three different policy aims via social pacts between government, employers and trade unions: reducing labour costs, improving work incentives and increasing labour market flexibility. The article analyses two examples of successful social pacts: the Netherlands and Italy, both countries that first found a consensus on wage policy and then moved on to further reforms of welfare and employment policies. Thereafter, two examples of uncoordinated reform policies are discussed: Germany and France. We argue that two factors are particularly important for the success of concerted reform policies: the co-ordination capacity of collective organisations and the credible threat potential of state intervention in collective bargaining and social insurance governance.
