SOCIAL DIALOGUE Workers

For workers' organizations, the challenges of the global economy are perhaps more complex. Issues vary greatly from one country to another. In many industrialized countries, for example, trade unions have been weakened by the extension of enterprise-level bargaining, which has made it more difficult for them to sustain national solidarity, and they have suffered from the expansion of the service sector where they find it more difficult to organize. In transition economies trade unions are struggling to crave out a new role; previously they served largely as agents of government, and they have ceded these functions without readily finding new ones. And in developing countries, where the formal sector is typically small, trade unions may have political influence that exceeds their membership base.

Moreover, around the globe, a surprising number of countries still impose crippling legislative restrictions on trade union organizing and on collective bargaining. Throughout the world, trade unions have to come to terms with the effects of globalization and international competition. Thus, trade unions are increasingly entering into bargains that cover not just wages and protection but also competitiveness and productivity. They have to reinforce the necessary knowledge and analytical skills for this purpose. In addition, workers' organizations need to develop a capacity for this macroeconomic analysis, so they can more effectively defend their members' interests. Since many corporate decisions are being taken at a global level, unions are also networking across sectors and over national borders.

Trade unions will need to continue to diversity their activities, both internally and externally. Internally they are increasing their appeal to workers by offering a new range of services, such as legal and financial advice or help with upgrading skills. Externally they are strengthening their position by seeking new alliances throughout civil society - with environmental groups, for example, or women's associations, or community associations. In taking up common causes with such groups, many trade unions have been able to secure broad public support for important employment issues, such as the plight of lower paid workers.