EU industrial relations vs national industrial relations. Developing a theoretical framework. From the Swedish point of view

The aim of this paper is to explore and analyse both EU industrial relations as such and the relationship between EU industrial relations and national industrial relations and the theoretical dimensions of this relationship. While EU labour law, the legal dimension, aims at a partial harmonisation of the different labour law models found in the Member States, EU industrial relations, the industrial relations dimension, constitute a new common European dimension of industrial relations situated above national industrial relations in the Member States. Swedish labour law, and legal theory and methodology, are my points of departure in analysing this topic. The power relationship and interactions between the social partners within the framework of the social dialogue, the European Employment Strategy, the open method of co-ordination and information and consultation form part of these EU industrial relations. Despite some convergent trends and a general process towards decentralisation, national industrial relations in the Member States are characterised by diversity. EU enlargement has further increased this diversity. As a result of the enlargement and the emphasis on free movement of persons and services within the European Union, the problems of posting of workers, low wage competition, and ‘social dumping’ are high on the agenda. In the Swedish context, the so-called ‘Laval case’ (which has been referred by the Swedish Labour Court to the European Court of Justice for a preliminary ruling, cf. Labour Court case AD 2005:49 and Case C-341/05) illustrates this problem and has given rise to massive legal and political debate. The free movement of persons and services challenges national systems of collective bargaining, wage-setting, industrial action, and industrial relations. On a more general level, this problem reflects a principal conflict between the free market and social protection, both of which are fundamental to the European Union. It is evident that EU industrial relations in many ways distinguish themselves from national industrial relations. In this paper I will explore and analyse both the practical expressions and the theoretical dimensions of EU industrial relations and multi-level governance. Using and developing the concept of EU industrial relations is a way of building a common framework for and analysing the synergy between the social dialogue and the open method of co-ordination. In their traditional sense, Swedish industrial relations (also known as the ‘Swedish Model’ of industrial relations) are characterised by a high degree of self-regulation, state non-intervention and autonomy of the social partners. The two central labour-market organisations, the Swedish Confederation of Trade Unions (LO) and the Confederation of Swedish Enterprise (Svenskt Naringsliv), were founded at the end of the 19 century and the beginning of the 20 century, and the cornerstone of today’s collective labour law emerged through the interactions of these social partners. The relationship between the social partners was characterised by co-operation, concert and social partnership. Swedish industrial relations are thus said to represent a successful balance of power between work and capital. Furthermore, Swedish industrial relations display distinct elements of corporatism, with the social partners co-operating with the state and sharing social responsibility. The Swedish labour market is strictly organised. Eighty to eighty-five percent of all employees are members of a trade union, and the organisation rate on the employer side is equally high. The development since the early 1970s, including individualisation, decentralisation,

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