The evolution of national social dialogue in Europe under the single market, 1992-2006

This paper examines the evolution of national social dialogue (bipartite wage bargaining) across European countries. Several commentators in the 1990s expected the dismantling of national social dialogue institutions. Following the liberalisation of markets, intensification of competition, and declining union power, bargaining structures were supposed to converge to the Anglo-Saxon model of decentralised bargaining. The paper seeks to gauge the plausibility of the ‘decentralization thesis’ using novel indicators of collective bargaining centralization across the EU15. It is shown that despite the changes in product markets, flexible working, and declining union density, a generalized decentralization of bargaining did not occur. Instead, in many European cases there is a counter-trend of centralization, which casts doubt to the decentralization thesis