The Netherlands: Unions and Pensions

Abstract

Bipartite and tripartite (that is, corporatist) management of social security probably has been institutionalized in the Netherlands more than any other Western European country. The foundations of this approach to management of social programmes are the denominational thrust of Dutch political life and a national commitment to solidarity. In addition, a well-established tradition of social democracy has combined with denominationalism and solidarity to consolidate a close link between social security and the workplace. The bias toward the workplace is particularly evident in the administration of state and occupational pension schemes. While government establishes the goals and standards of pensions, the state plays a limited role in managing them, even less in funding them. To understand why, we need a brief sketch of the politics and the economy of the Netherlands.