Conference on the New Social Contract - A Trade Union Perspective for Central and Western Europe

The world is undergoing a significant transformation, following increasing geo-political tensions, in part driven by changing patterns in globalisation, rapid technological change and the devastating impacts of climate crisis and environmental degradation. These changes are profoundly affecting the world of work, threatening sustainable economic development and social cohesion in many European countries. This has to some extent challenged the capacity of many governments to provide adequately for its people and to honour its social contract, given the fact that regulatory systems are at times lagging behind said fundamental challenges that affect our societies.

The multitude of crises many countries have found themselves in, be it the Covid-19 pandemic and ensuing cost of living crisis or conflicts and other geo-political challenges, has prompted a fundamental shift in the macroeconomic environment with long lasting consequences for workers. Governments around the world have been grappling with the challenge of addressing higher price levels and falling real wages without stifling economic growth nor cutting crucial fiscal spending much needed by many. This has come after decades of liberal economic policies, characterized by deregulation, privatization, financialization, and a reduced role for the state in the economy. While these policies have at times stimulated economic growth, if not properly regulated they have also led to an increase in inequalities and made employment more precarious, particularly for young workers. Such policies have therefore the potential to cause greater social instability if they are not accompanied by a coherent set of macroeconomic policies that merge economic, social and environmental goals. Such policy coherence requires further integration of policy makers both at national level, but also across Europe.

Such regional integration is also vital to tackle the global impact of technological change. The rise of digital platforms, artificial intelligence, and automation is changing the nature of work, leading to new and oftentimes precarious forms of employment but also challenging our conception of an employment relationship, with consequences for job security, workers’ rights and the overall composition of employment in Europe. Furthermore, these technological advancements are disrupting traditional business models, creating a more flexible but also a more precarious labour market. Workers are increasingly employed in non-standard forms of work, such as platform-based work, temporary or part-time work, and self-employment. While these forms of work can offer increased flexibility and autonomy to some, they often lack the protections and benefits associated with standard employment, such as social protection or the right to bargain collectively.

In this context, the concept of a “new social contract” has emerged as a framework for rethinking the relationships between the state and its people. This new social contract aims to foster social progress and social justice, to ensure systematic inclusivity in every dimension of social and economic life, and to provide our economies and our societies with the necessary agility to adapt to a world undergoing rapid and profound changes. In this sense, any future social contract, should recognize the decisive role of the labour market, in particular of decent work, by ensuring employment priorities are aligned with economic, social and environmental priorities. This ensures that everyone can benefit from economic development through decent work, social protection, and a just share of the wealth they help to create regardless of the type of work or their employment status. It calls for a more inclusive and equitable distribution of the benefits of economic growth, and for a strengthening of social dialogue and collective bargaining as means to achieve this.

The new social contract also recognizes the need for a just transition towards a more sustainable economy. The transition towards a green economy, driven by the need to combat climate change, can create millions of new jobs in sectors such as renewable energy, energy efficiency, and sustainable agriculture, however only if this is done in the context of a just transition ensuring that workers are not left behind by the profound transformations of the economy this would require.

Trade unions have a crucial role to play in shaping this new social contract. As the largest membership-based organisation in the world, they must advocate for more inclusive and equitable economic policies, and for a just transition towards a more sustainable economy. However, to effectively play this role, trade unions need to adapt to the changing world of work and to strengthen their capacity to represent and protect workers that are increasingly falling through the cracks of governance systems, such as those who are informal, migrant or platform workers.

This conference aims to provide a platform for trade unions from across Western and Central Europe to discuss these challenges and opportunities, and to support them in shaping the new social contract at national and regional level. It is an opportunity for trade unions to learn from each other’s experiences, to develop common strategies, and to strengthen their collective voice in shaping the future of work, in particular towards the Second World Summit for Social Development in 2025. It is an ample opportunity to evaluate the involvement of the labour movement in the agenda 2030, and to discuss the way forward, including their continued participation in the multilateral system to shape public policies for renewing the social contract, through initiatives such as the Global Coalition for Social Justice.

In that regard, the conference will focus on the concept of a new social contract, how existing social contracts have failed in providing for the needs of its people and delve deeper on two key aspects of the new social contract: macroeconomic policies and technological change. These are two of the main drivers of the current transformations in the world of work, and they are also areas where trade unions can have a significant impact. By focusing on these areas, the conference aims to equip trade unions with the knowledge and tools they need to shape the new social contract and to promote decent work and social justice in the region.

Objectives:

1. The conference will provide a platform for regional dialogue among trade unions, governments, employers’ representatives and academia on the evolving social contract in the context of changing economic, social and environmental impacts, with a particular focus on macroeconomic policies and technological advancements.
2. It will facilitate exchange of best practices and lessons learned with regards to the role trade unions play in influencing policy making, and to discuss strategies on recent economic and social challenges.
3. Develop actionable recommendations for policy and practice to strengthen the role of the tripartite constituents, governments, employers’ and workers’ organisations, in shaping the new social contract.

Day 1

Day 2