Abstract
This chapter analyses the intersection of global recession with the viability of social dialogue between labour and capital in post-communist states. It examines the crisis in a region where its effects have been most pronounced, the Baltic countries of Estonia, Latvia and Lithuania, formerly Soviet republics and now full members of both NATO and the European Union (EU). The ‘shock’ of global economic and financial recession has had severe impacts on Baltic economies and, therefore, has also demanded radical changes on the part of governments. Through an analysis of responses to the crisis, this chapter attempts to assess the inherent strengths or weaknesses of social dialogue in the region. We suggest that trade unions have failed to influence the course of governmental crisis response measures. This is the result of the inherent weaknesses of post-communist trade unions, which have permitted governments to introduce fiscal policies largely unopposed. These measures have provided the primary means of adjustment to spiralling budget deficits in Latvia and Lithuania. In Estonia, which had previously succeeded in maintaining one of the lowest budget deficits in the EU, the crisis response measures were motivated as much by the determination to avoid the same predicament as its Baltic neighbours, as by the attempt to mitigate the almost as severe economic impacts of the crisis.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Aidukaite, J. ‘Transformation of welfare systems in the Baltic States: Estonia, Latvia and Lithunia’, in Alfio Cerami and Pieter Vanhuysse (eds), Post-Communist Welfare Pathways: Theorizing Social Policy Transformations in CEE, Basingstoke: Palgrave Macmillan, 2009.
Baltic Course (2009a). ‘Krigers: Latvian government hasn't discussed conditions of loan with social partners again’, 20 January. Available online at: http://www.baltic-course.com/eng/markets_and_companies/?doc=8907&underline=Krigers.
Baltic Course (2009b). ‘Andris Skele proposes public agreement to improve economic situation in Latvia’, 12 March. Available online at: http://www.baltic-course.com/eng/analytics/?doc=24643&underline=social+partners.
Baltic Course (2009c). ‘World Bank: Lithuania faces euro criteria hurdles, Danuta Paviliene’, 12 August. Available online at: http://www.baltic-course.com/eng/finances/?doc= 16919.
BASTUN (Baltic Sea Trade Union Network) (2009a). ‘Manifestation: For Latvia. Against Injustice’. People of Latvia against political cowardice. Available online at: http://www.bastun.nu//index.php?option=com_content&task=view&id=122&Itemid=199.
BASTUN (Baltic Sea Trade Union Network) (2009b). ‘Road to Recovery’, Trade Union High Level Meeting, Vilnius, 26 November. Available online at: http://www.bastun.nu/index.php?option=com_content&task=view&id=136&Itemid=134.
Bohle, D. and Greskovits, B. ‘Neoliberalism, embedded neoliberalism and neocorporatism: Towards transnational capitalism in Central-Eastern Europe’, West European Politics, 2007, 30(3): 443–466.
Casale, G. (ed.) Social Dialogue in Central and Eastern Europe Budapest: International Labour Office, 1999.
Delfi (2009). ‘Lietuvos provincija jau pajuto bada?’ Available online at: http://www.delfi.lt/news/daily/lithuania/article.php?id=23422422.
EAKL (2009). Available online at: http://www.eakl.ee/.
Economist (2009a). ‘No panic, just gloom’. Available online at: http://www.economist.com/world/europe/displayStory.cfm?story_id= 13650051.
Economist (2009b). ‘Briefing, Ex-communist economies, The whiff of contagion’. Available online at: http://www.economist.com/world/europe/displaystory.cfm?story_id=13184594.
Eironline (2008). ‘Trade unions win support for referendum on people’s right to dissolve parliament’. Dublin: European Foundation for the Improvement of Living and Working Conditions. Available online at: http://www.eurofound.europa.eu/eiro/2008/06/articles/lv0806039i.htm.
European Central Bank (2009). ‘Opinion of the European Central Bank of 20 July 2009 on the procedure to change the official Litas exchange rate’ (CON/2009/61). Available online at: http://www.ecb.int/ecb/legal/pdf/en_con_2009_61_lt_credibility_of_the_litas.pdf.
European Commission (2000). 2000 Regular Report on Lithuania’s Progress Towards Accession, chapter 13 (Brussels) 62–23. Available online at: http://ec.europa.eu/enlargement/archives/pdf/key_documents/2000/lt_en.pdf.
European Commission (2004). ‘Communication from the Commission, Partnership for change in an enlarged Europe — Enhancing the contribution of European social dialogue’, Brussels, 12 August, COM (2004) 557 final, Available online at: http://eurlex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=en&type_doc=C0Mfinal&an_doc=2004&nu_doc=557.
European Commission (2009). ‘Economic Forecast Spring 2009’. Brussels: Directorate- General for Economic and Financial Affairs. Available online at: http://ec.europa.eu/economy_finance/publications/publication15048_en.pdf.
Eurostat, Newsrelease, euroindicators (2009a). Available online at: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-24082009-AP/EN/4-24082009-AP-EN.PDF.
Eurostat, Newsrelease, euroindicators (2009b). Available online at: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/3-31072009-BP/EN/3-31072009-BP-EN.PDF.
Eurostat, Principal European Economic Indicators (2009c). Employment — Percentage change q/q-4 (NSA) Percentage changes. Available online at: http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&plugin=1&language=en&pcode=teina300.
Eurostat, Principal European Economic Indicators (2009d). Private final consumption expenditure, volumes. Percentage change q/q-4. Available online on: http://epp.eurostat.ec.europa.eu/tgm/refreshTableAction.do;jsessionid=9ea7971b30df390b88b70416418e95d989cbbbbbba87.e34RaNaLaN0Mc40LcheTaxiLbxyLe0?tab=table&plugin=1&pcode=teina021&language=en.
Eurostat, Newsrelease, euroindicators (2009e) Available online at: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/3-15122009-AP/EN/3-15122009-AP-EN.PDF.
Eurostat (2010a) 26 February 2010, Real GDP growth compared to the previous year, authors’ calculations.
Eurostat, First estimates for the fourth quarter of 2009, euroindicators (2010b) 34/2010, 4 March. Available online at: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-04032010-AP/EN/2-04032010-AP-EN.PDF.
Eurostat, Labour markets in the EU-27 still in crisis, Statistics in Focus (2010c) 12/2010. Available online at: http://epp.eurostat.ec.europa.eu/cache/ITY_0FFPUB/KS-SF-10-012/EN/KS-SF-10-012-EN.PDF.
Eurostat (2010c) 26 February 2010, authors’ calculations. Available online at: http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tsieb020.
IMF (International Monetary Fund) (2010) World Economic Outlook — Rebalancing Growth April 2010. Washington DC: International Monetary Fund (2010), Available online at: http://www.imf.org/external/pubs/ft/weo/2010/01/pdf/text.pdf.
Jensen, S. ‘Baltic Corporatist Arrangements — A Comparative Analysis of Tripartite Arrangements in Estonia, Latvia and Lithuania’, MA Thesis, University of Bergen (2003).
Latvijas Statistika (2010) ‘On changes of wages and salaries in 2009 and 4th quarter of 2009’, 2 March. Available online at: http://www.csb.gov.lv/csp/events/csp/events/?mode=arh&period=03.2010&cc_cat=471&id= 11941.
Mailand, M. and Due, J. ‘Social Dialogue in Central and Eastern Europe: Present State and Future Development’, European Journal of Industrial Relations, 2004, 10(2): 179–197.
Nacionalinis susitarimas (2009) 28 October. Available online at: http://www.lps.lt/usr_img/susitarimas_pasirasytas.pdf.
Ost, D. ‘Illusory Corporatism in Eastern Europe: Neoliberal Tripartism and Postcommunist Class Identities’, Politics & Society, 2000, 28(4): 503–530.
Ost, D. The consequences of post-communism: Trade unions in Eastern Europe’s future’, East European Politics and Societies, 2009, 23: 13–33.
Respublika (2009) ‘The ghost of hunger is stalking about’. 8 August 2009, 1.
Roche, W.K. ‘Social Partnership in Ireland and New Social Pacts’, Industrial Relations: A Journal of Economy and Society, 2007, 46(3): 395–425.
Statistics Estonia (2010a) Online database (8 March). Available online at: http://www.stat.ee/37812.
Statistics Estonia (2010b) Most requested statistics (16 March). Available online at: http://www.stat.ee/37812.
Statistics Lithuania (2010a) International Migration. Available online at: http://db1.stat.gov.lt/statbank/selectvarval/saveselections.asp?MainTable=M3020102&PLanguage=1&TableStyle=&Buttons=&PXSId=6282&IQY=&TC=&ST=ST&rvar0=&rvar 1=&rvar2=&rvar3=&rvar4=&rvar5=&rvar6=&rvar7=&rvar8=&rvar9=&rvar10=&rvar11=&rvar12=&rvar13=&rvar14=.
Statistics Lithuania (2010b) Earnings, IV Quarter 2009, press release no. 1/026, 24 February. Available online at: http://www.stat.gov.lt/uploads/docs/Press_release_1.pdf.
Thomas, L. Jr. ‘From Lithuania, a View of Austerity’s Costs’, New York Times, 1 April, Business supplement (2010).
Vatta A. ‘The Enlargement of the European Union and Social Dialogue in Central and Eastern Europe’, Perspectives on European Politics and Society, 2001, 2(1): 127–146.
Van Gyes, G., Kohl, H., Lehndorff, S., Schief, S., and Vandenbrande, T. (2007) Industrial relations in EU member states 2000–2004. Synthesis report for the European Foundation, Dublin: European Foundation for the Improvement of Living and Working Conditions. Available online at: http://www.eurofound.europa.eu/pubdocs/2007/15/en/1/ef0715en.pdf.
Woolfson, C. and Beck, M. ‘Re-mapping Labour’s Rights: The Case of Transitional Lithuania’, Europe-Asia Studies, 2002, 54(5): 749–769.
World Bank. Doing Business in 2006: Eastern European and Baltic Nations Encourage Businesses with Aggressive Regulatory Reforms. Press Release, 12 September, Washington, DC: World Bank, 2005.
Editor information
Copyright information
© 2011 the contributors
About this chapter
Cite this chapter
Woolfson, C., Kallaste, E., Berzins, J. (2011). Industrial Relations and Social Dialogue in the Baltic States — Crisis, Conflict and Compromise. In: Contrepois, S., Delteil, V., Dieuaide, P., Jefferys, S. (eds) Globalizing Employment Relations. Palgrave Macmillan, London. https://doi.org/10.1057/9780230306813_12
Download citation
DOI: https://doi.org/10.1057/9780230306813_12
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-32207-7
Online ISBN: 978-0-230-30681-3
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)