First insights into interview findings

November 18, 2024

Trust is a fundamental element in shaping industrial relations (IR), fostering cooperation and effective social dialogue between employers, employee representatives, and unions. Research shows that trust positively affects the performance and efficiency of institutions, and influences broader societal outcomes such as economic stability, democracy, and social equity.

In the context of industrial relations, trust enhances institutional performance and is crucial for effective negotiations, collective bargaining, and cooperation across sectors. However, trust dynamics vary greatly depending on national contexts, sectoral structures, and individual relationships, making a comparative approach essential.

The TRUE Europe project explores the role of trust in industrial relations across eight European countries – Sweden, Austria, Ireland, Czechia, Slovakia, Lithuania, Romania, and Serbia – covering the banking and finance, metal, and transport sectors.

Interviews with social partners conducted over the summer have begun to reveal key themes and differences in how trust is built and maintained, offering early insights into the trust factors that shape stable and effective IR systems across these diverse settings.

Sweden

Sweden’s industrial relations (IR) system, characterised by organised corporatism, boasts the highest union density among the researched countries at 65%, and high bargaining coverage, especially in the metal (90%) and public transport sectors (nearly 100%). This system of sectoral bargaining with company-level adjustments fosters a complex yet well-structured social dialogue. However, the presence of multiple social partners in each sector may pose challenges in maintaining trust during joint negotiations.

Reflecting on this, Glenn Sjöstrand from Linnaeus University shared that: “We received some interesting responses and questions. Among them were: How can we relate the mechanisms of trust across different levels (local, sectoral, institutional), and what is the role of power between negotiating parties at the same or different levels in the formation and reproduction of trust?”

Austria

Austria’s social partnership IR regime combines relatively low union density (26%) with near-total bargaining coverage (almost 100%) due to compulsory membership in employers’ associations and statutory extension of collective agreements. This legal framework fosters mutual trust between social partners, supported by the country’s tradition of social partnership. In Austria, the statutory rules provide a solid foundation for social dialogue, even though these dynamics were not explored in the provided quotations.

Ireland

In Ireland, with its liberal pluralist IR regime, collective bargaining is more fragmented, with lower bargaining coverage (35%) and significant variation across sectors (from 20% in metal to 90% in public transport). Trust within social dialogue in Ireland is primarily driven by interpersonal relationships at the company level rather than structured, process-based interactions, which presents both opportunities and challenges.

“Early indications from interviews suggest that personal trust, which hinges on relationships and interpersonal dynamics, plays a more critical role than process-based trust when engaging in collective bargaining in Ireland. Significant variation in trust exists across workplaces due to these personal relationships and individual actors,” elaborated Aurora Trif from Dublin City University.

Czechia

Czechia is featuring union density at 11% and bargaining coverage at 35%, though some multi-employer bargaining remains. Trust within the IR system often hinges on personal connections between the social partners at the company level. The relatively low fragmentation of social partners in Czechia could make it easier to develop and maintain trust compared to other CEE countries.

In line with this observation, Monika Martišková from CELSI commented: “In my interviews, respondents often highlight the importance of personal trust for good company-level social dialogue. They often mention that everything is about people. When analyzing the interviews, I plan to look at what are the effects of these attitudes on the stability and continuity of social dialogue at the company level.”

Slovakia

In Slovakia, sharing a similar IR system with Czechia, the industrial relations system is similarly fragmented, with union density at 11% and bargaining coverage of around 24%. The state-centred IR regime in Slovakia presents challenges in building trust due to its fragmented social dialogue structures, especially across the transport and metal sectors.

Adam Šumichrast from CELSI explained: “At this stage, it is already clear that a common factor in all interviews conducted is the need to build trust on respect for mutual agreements. While this may not apply universally, only a detailed analysis of individual cases in sectors will reveal specific differences.”

Lithuania

In Lithuania, union density is low at 11%, and bargaining coverage is only 27%. Recent increases in public sector bargaining have highlighted the importance of trust-building mechanisms, despite the challenges posed by the neo-liberal IR regime and the growing influence of individual bargaining.

“During interviews, Lithuanian social partners often referred to the complex interplay of historical, organisational, and even global factors that shape everyday practices of trust building and trust maintenance. Though the social partners in different sectors face specific challenges, the actions and attitudes of individual union leaders and employers play a significant role in shaping trust,” reflected on the Lithuanian situation Julija Moskvina from Lithuanian Social Research Centre.

Romania

Romania’s fragmented industrial relations regime exhibits the lowest level of trust among the countries studied, particularly in the transport sector, which is highly divided. The fragmentation of social partners in transport (with land, air, and sea divisions) leads to low bargaining coverage and high protest frequency, contrasting with the financial sector, where a more unified structure fosters higher levels of trust.

Alina Popescu from Bucharest University of Economic Studies described this fragmentation: “In Romania, it can be observed that the level of trust varies depending on the organisation of the social partners at the sectoral level. The fragmentation of the transport sector generates a significantly low level of trust between social partners, whereas in the financial sector, there is a higher level of trust and a more developed industrial relations system.”

The TRUE Europe project’s early findings reveal that trust is a vital component in industrial relations (IR), shaping effective social dialogue and cooperation across sectors. However, the dynamics of trust-building vary significantly across the eight countries and sectors studied, highlighting the importance of local and sector-specific contexts.

The interviews conducted with social partners provide nuanced insights into how trust is built, maintained, or undermined in the banking, finance, metal, and transport sectors. These early insights underscore the need for tailored approaches to foster trust and stability in industrial relations across different national and sectoral contexts.

All news