Industrial Relations as a Source of Social Policy: A Typology of the Institutional Conditions for Industrial Agreements on Social Benefits

The article's starting point is that the now‐conventional conceptualization of welfare state retrenchment as a shift from state provision of income support to market processes is misleading. Rather, state provision may be replaced by benefits negotiated collectively by trade unions and employers. As a first step to further investigate this development the article suggests a typology of institutional contexts within which industrial agreements on social benefits emerge. This typology is based on Thomas H. Marshall's distinction between political and industrial citizenship. Following the comparative method of the ‘parallel demonstration of theory’, the typology is applied to four countries where collective agreements on social benefits have recently been concluded, namely Denmark, France, the Netherlands and Germany. It is argued that, on the one hand, the state's activity or passivity in labour relations and, on the other hand, the timing of the institutionalization of political and industrial citizenship is decisive for the development of collectively negotiated benefits. The conclusion for comparative welfare state research is that, when viewing policies of welfare state retrenchment, the research should systematically include industrial relations and their historical trajectories in its frame of reference.     

Leaving the Nordic Path? The Changing Role of Danish Trade Unions in the Welfare Reform Process

For a long period, Denmark has been labeled a ‘model country’ with a comprehensive welfare state and a successful model of corporatist policy‐making. Danish unions are considered amongst the strongest in the world, and they have for a long time been a distinct part of the political system, and as social partners, they were strongly integrated into decision‐making processes. The analysis of the Danish welfare and labour market policy during the last two decades documents a profound change in the arrangement and in the status of the social partners (especially unions) in the Danish political system. The results show that two important pillars of the Danish model – the social partner basis and the collective trust in partnership – are eroding. Unions are no longer part of the law‐making process and, since 2007, they are formally excluded from the organization of the decision‐making process. Recent developments point at weaker unions that operate more as lobbyists instead of being strong corporatist institutions or part of the decision‐making process. The results of the study are thought‐provoking and the basis for a revised thinking of the Danish and the Nordic model.     

From Subsidiarity to 'Free Choice': Child- and Elder-care Policy Reforms in France, Belgium, Germany and the Netherlands

This article analyses the patterns of reform in care policies in Bismarckian welfare systems since the early 1980s. Based on a comparison of France, Germany, Belgium and the Netherlands, the article shows that these reforms share similar logics and trajectories, which can be explained by the shared conservative and corporatist traits of Bismarckian labour markets and welfare state institutions and their impact on labour market adjustment possibilities and preferences. Indeed, we argue that care policy reforms have been very closely linked to specific employment strategies, and the politics of welfare without work and subsequent attempts to shift away from such a labour-shedding strategy go a long way in explaining both the nature and the timing of child- and elder-care policy reforms in Bismarckian welfare systems. The article also shows how a focus on promoting ‘free choice’ in all four countries has justified the introduction of measures that have simultaneously reinforced social stratification in terms of access to the labour market – meaning that some women have much more ‘free choice’ than others – and weakened certain labour market rigidities. To conclude, we argue that care policy reforms have provided a backdoor for the introduction of labour-cheapening measures and for increasing employment flexibility in otherwise very rigid labour markets.     

Straddling Two Continents: Social Policy and Welfare Politics in Turkey

There has been an increasing academic interest in understanding the dynamics of social policy in the Middle East and developing a conceptual ‘model’ to account for the particular characteristics of welfare arrangements in the countries of the region. While part of this framework, Turkey represents an exceptional case due to the Europeanization processes the country is undergoing in various policy areas, including social policy. The influence of the European Union on the shape of Turkish social policy, as illustrated by the government's recent reforms in the labour market and social security domains, is hereby used to outline the position of Turkey vis‐à‐vis both the Southern European welfare regime and the Middle Eastern pattern. This article seeks to assess the dynamics of Turkish social policy in light of the country's political, and socio‐economic dynamics, as well as the external influence exerted by the EU and international financial institutions. The aim is to examine Turkish welfare arrangements in a comparative manner and consider its suitability with reference to either of the two models. Looking at major trends in social security and the labour market, the article argues for a Turkish ‘hybrid’ model embodying the characteristics of both. Subject to EU explicit pressures for reform absent elsewhere in the Middle East, the data nevertheless show that Turkey has yet to make the qualitative leap forward that could place it firmly within the Southern European welfare group.     

The Politics of Welfare State Retrenchment: A Literature Review

Welfare state retrenchment is widely seen as a highly unpopular endeavour and, therefore, as politically difficult to pursue. This assumption has underpinned most of the political science research on this issue, notably Paul Pierson's seminal contributions about the ‘new politics of the welfare state’. Yet, the question remains why and under what circumstances cutbacks take place in highly developed welfare states despite these formidable political obstacles. This article reviews the literature on the politics of retrenchment, namely on the impact of socio‐economic problem pressure, political parties, political institutions, welfare state structures and ideas. Most authors agree that socio‐economic problems – particularly domestic problems – contribute to an atmosphere of ‘permanent austerity’ which inspires cutbacks. Moreover, according to most scholars, the extent of retrenchment possible depends on the specific institutional configuration of a political system and the path dependence of existing welfare state structures. The debate on the relevance of political parties and ideas, by contrast, is still far from settled. Further unresolved issues include the nature of the dependent variable in retrenchment studies. Also, the exact motives for cutbacks are theoretically still little understood, as are the political mechanisms through which they are realized. I argue that, because of the nature of these persisting issues, the pluralistic dialogue between different methods and approaches – as well as their combination – remains the most promising way forward in the study of welfare state politics.     

Social Dialogue: A Potential "Highroad" to Policies Addressing Ageing in The EU Member States

The impact of demographic ageing on the sustainability of pensions has become the focus of heated debate in Europe, as governments try to reform their welfare systems. Among the most vocal opponents of the reforms are employers' organizations and managements, trade unions and individual workers. The article looks at the issues at stake and the relevance of social dialogue, despite difficulties, for reaching consensus among all stakeholders on acceptable labour market and pension reforms. These have to be comprehensive and free from ideological a priori assumptions. Specific examples of available options are mentioned, including Finland, Denmark, Spain and the United Kingdom.     

Nationalist Reframing of the Finnish and Swedish Welfare States – The Nexus of Nationalism and Social Policy in Far‐right Populist Parties

The rise of right‐wing populist parties in the Nordic countries is slowly redefining the Nordic social democratic discourse of the universal and egalitarian welfare state. The nexus of nationalism and social policy has been explored in regions and countries such as Quebec, Scotland, Belgium and the UK, but the change of discourse in the Nordic countries has received less attention. Taking the case of Sweden and Finland, this article argues that Nordic populism does not question the redistributive welfare state per se as many other European neo‐liberal far‐right parties have done. Instead, it reframes the welfare state as being linked to a sovereign and exclusive Swedish and Finnish political community with distinct national boundaries. Although Sweden and Finland largely share a common welfare nation state discourse, the article also points to important differences in the way this discourse is able to frame the welfare nation state where access to, and the design of, social services are no longer universal and egalitarian but based around ethnicity. The article aims to demonstrate this through an analysis of the welfare discourses of two populist parties: Sweden Democrats and True Finns.     

After New Labour: political and policy consequences of welfare state reforms in the United Kingdom and Australia

ABSTRACT

Growing global integration, combined with the collapse of Soviet Communism, created major challenges for centre-left politics in the democratic world. This article considers two transformative Labour Party-led experiments that refurbished the welfare states of Australia and the United Kingdom, respectively. In Australia, this includes the Hawke–Keating (1983–1996) and Rudd–Gillard (2007–2013) Governments, and in the United Kingdom, the ‘New Labour’ Blair–Brown Governments (1997–2010). We present a comparative political economy of these welfare reforms, one that draws on both the policy transfer and policy diffusion literatures. By the 1980s, both parties faced three problems related to national economic decline, the ideological challenge to Keynesianism, and the decline of the traditional working-class electorate. We argue both parties developed common electoral and governing strategies aimed at winning support for a market-driven social-democratic program. Policy simultaneously compensated voters for market inequalities and deepened market relations. Focusing on how labour governments managed post-industrial change, responded to inequalities, advanced quasi-markets, and negotiated with union partners, we argue these experiments produced increasingly contradictory results that left both parties electorally and ideologically depleted. Despite important similarities, we note differences – starting points, discrete events and institutional variations have mattered to reform paths and their consequences.     

The Italian Case: From Employment Regulation to Welfare Reforms?

This article on the Italian case is based on recent trends in labour market reform. We critically review the reform approach adopted in recent years, mainly centred on marginal legislative reforms in employment contracts. The diffusion of flexible labour contracts, especially among the younger generations and women, together with a welfare system still based on employment seniority and job characteristics, have reinforced the segmentation of the Italian labour market and social inequalities. The absence of a negotiating strategy in introducing reforms has also increased social conflict. These trends ask for a comprehensive reform of the welfare system and for active policies to support labour market transitions, a reform which is increasingly considered in the current political debate.     

Social investment,social service and the economic performance of welfare states

This article begins with an examination of the role of social services as the key instrument of social investment strategy, presenting an empirical analysis of its impact on economic performance. A pooled time series, cross‐section analysis was conducted with the data of 15 welfare states from 1990 to 2007 under the ‘social investment hypothesis’ that more social service orientedness brings about a greater positive effect on the economy. The results show that a larger share of social service spending in the total social expenditure – more social service orientedness – contributes to economic growth and labour market performance, whereas a larger aggregate size of the welfare state may have a negative effect on employment. In conclusion, this study suggests that the relatively ambiguous welfare strategy of social investment could be clarified as a ‘transition from income security to livelihood security’ in which emphasis is placed on social service. Key Practitioner Message: ● This study suggests that the key instrument of social investment strategy is social service; ● The results show that more social service orientedness contributes to economic growth and labour market performance.     

Foundations of the Workfare State – Reflections on the Political Transformation of the Welfare State in Britain

The British ‘welfare state’ has been transformed. ‘Welfare’ has been replaced by a new ‘workfare’ regime (the ‘Work Programme’) defined by tougher state regulatory practices for those receiving out‐of‐work benefits. US‐style mandatory community work programmes are being revived and expanded. This article, therefore, considers shifting public attitudes to work and welfare in Britain and changing attitudes to working‐age welfare and out‐of‐work benefits in particular. It also considers the extent to which recent transformations of the state may be explained by declines in traditional labourist politics and class‐based solidarity. Thus, we attempt to develop a richer understanding of changing public attitudes towards welfare and the punitive regulatory ‘workfare’ practices engaged by the modern state in the liberal market economy; reflecting on the nature of the relations between ideology, party policies, popular attitudes and their political impact.     

Third Way Social Governance: Where is the State?

The ‘Third Way’ politics of Blair's New Labour government of the United Kingdom has popularised a number of policy reforms centred on a supposedly new discourse of ‘devolution’, ‘inclusion’, ‘partnerships’ and ‘community’. These notions reflect a re‐emergence of the ideas and values of civil society, participation and localism. Key drivers of this discourse are: new conceptions of citizenship; a retreat from the social state to a politics of community; and a questioning of both ‘big‐state’ interventionist and competitive market approaches to public policy. These trends have resonance in the Australian context. The welfare reform agenda of the Australian Commonwealth government together with community building and engagement initiatives of State governments have been sites for these policy directions. Much of the debate surrounding these policies excludes or minimises the fundamental role of an active state by focusing on an uncritical conception of community. Drawing on the notion of network governance, an alternative framework for re‐conceptualising state‐community relations and delivering improved community outcomes is posited. The paper concludes by suggesting possible social governance methodologies for actioning this framework.     

The Politics of Social Policy Language

A number of scholars have recently shown that key social policy concepts like ‘welfare state’ are both vague and problematic. Drawing on the international literature on the role of ideas in social policy, this article compares the development of two major policy concepts in two countries where the language of social policy is openly contentious: the USA and France. Focusing on the last three decades, the article discusses the meaning and development of the concepts of ‘social security’/‘sécurité sociale’ and ‘welfare state’/‘État‐providence’ in both countries. As suggested, these two concepts have long been controversial, in part because they are typically involved in the inherently political drawing and redrawing of the contested boundaries of state action. Overall, the article explains how the comparative analysis of social policy language can help scholars adopt a more reflexive approach.     

The Role of Non‐profit Organizations in the Mixed Economy of Welfare‐to‐Work in the UK and Australia

This article charts the development of welfare‐to‐work policies and compares and contrasts the traditions of delivery in the UK and Australia. We find that in the UK, employment services and social security benefit administration have been dominated by the central state, traditionally affording a key role to civil servants as direct delivery agents. However, in federal Australia, mixed economies of welfare‐to‐work operate in the different states, there is a far greater role for social services and non‐profit organizations are firmly established as key providers of frontline employment services. Since the late 1990s, UK welfare reforms have been gradually following the Australian lead in contracting non‐state actors as delivery agents. As this trend seems set to continue and intensify, we examine the Australian experience in order to reflect on the role of non‐profits in policy reform.     

Squaring the welfare circle and government ideology: Greece and Spain in the 1990s

This article examines the "squaring the welfare circle" thesis and its usefulness to our understanding of welfare developments in Greece and Spain in the 1990s. The welfare state in both Greece and Spain was expanded considerably in the early 1980s by the newly elected socialist governments, only to hit the buffers of diminishing resources and rising demands in the late 1980s as well as the hostile neo-liberal welfare ideology. The process of welfare expansion was halted in the 1990s, labour market deregulation was encouraged and containment of welfare expenditure became the dominant aim of government policies. This article concentrates on the actual policies of governments in the 1990s rather than on the rhetoric of political parties. It concludes that governments of both the Left and the Right in both countries attempted to "square the welfare circle" mainly through reductions in the supply of welfare. This general conclusion is country-specific and may not apply to other countries involved in welfare restructuring. While recognizing the significance of institutional factors to welfare reform, the article concentrates on the outcomes of reforms rather than on the political process leading to them.     

Learning to love (the state) again? Money,legitimacy and community sector politics

The erosion and dismantling of the post‐war welfare settlement has entailed an expanded role for the community sector, as a complex ‘mixed economy of service provision’ has developed. Critiques from both right and left have undermined the legitimacy of a statist model of welfare; state funding of non‐government community organisations is one aspect of the move away from centralised delivery. Despite their important role in this process, the distinctive perspectives of community sector organisations are rarely considered in broader theoretical and political debates. These organisations face significant dilemmas in struggling to maintain their viability and independence. Analysis of three major arguments for funding shows how organisations challenge the state's legitimacy by insisting on their own independent role but precariously rely on traditional sources of welfare state funding. This analysis draws into question the possibility of satisfactory non‐statist theories of welfare. It also suggests that the community sector might need to reposition itself as part of a broader public system of welfare, rather than in opposition to government, but that this strategy entails obvious risks for organisations' independence.     

Risk and its Management in Post-Financial Crisis Hong Kong

In the 1970s and up until the financial crisis occurred in the late 1990s, Hong Kong prospered in a relatively stable social, economic and political context. Since the financial crisis, however, its population has been increasingly exposed to risk: there has been job uncertainty and decreasing capacity for self‐reliance, leading to a growing reliance on public welfare and on families at a time when both are under pressure. The old welfare policies, unable to cope with the new risks, have been replaced by neo‐liberal reforms, redistributing the roles and responsibilities of the individual and the state, with a greater burden falling on the former. Individuals are required to be prudent to manage risk. While these reforms have relieved some of the burden on the state, both new social risk groups and ‘net taxpayers’ considered themselves to have borne disproportional costs. Society is facing serious problems resulting from ineffective old welfare policies, new social risks due to new policies, and the political upheavals arising from increased social conflicts and weakened social cohesion and solidarity. A further complication is that there is no acceptable platform or agent to negotiate a compromise between the polarized groups. This article argues that reliance on publicly funded risk coping strategies or on neo‐liberal risk prevention and mitigation strategies is not a desirable and sustainable policy. A commonly accepted political platform is required to negotiate a compromise which emphasizes shared and balanced roles and responsibilities, and a well‐conceived combination of risk prevention, mitigation and coping strategies.     

From welfare state to welfare society: toward a viable system of welfare in Japan and England

Laratta R. From welfare state to welfare society: toward a viable system of welfare in Japan and England
Int J Soc Welfare 2010: 19: 131–141 © 2009 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. This article compares the impact that public welfare reforms during the 1980s and 1990s had, and are still having, on the relationship between statutory organisations and the non‐profit sector in two developed countries, England and Japan. The author argues that the failure of these reforms clearly shows that, although non‐profit organisations may not be able to effectively replace the state in the provision of welfare services, they can contribute, working closely with the statutory organisations, to the shaping, financing and delivery of public services in a variety of ways. It is also interesting to note that, while the public welfare reforms of the late 1990s in England produced a shift away from a culture based on privatisation and contracting‐out toward a partnership culture of collaboration between state and non‐profit entities, similar reforms in Japan have resulted instead in an uncertain area of deregulation and privatisation.     

The Middle‐class in the German Welfare State: Beneficial Involvement at Stake?

The working‐class is typically regarded as the driving force of welfare state development. Yet, some argue that the middle‐classes' beneficial involvement in the welfare state is crucial for its financial sustainability and popular legitimacy. Against this backdrop, we investigate how recent welfare state reforms in Germany which affect the status of the middle‐class are viewed and discussed by this group. Germany is a particularly interesting case because its welfare state is seen to be centred on the desires of the middle‐class, especially through its focus on status maintenance and horizontal redistribution over the life‐course. However, the move from status maintenance to minimum income support in unemployment provision and the strengthening of private old age provision challenge this assumption. Thus, we ask how the German middle‐class views the emerging abandonment of the principle of status maintenance and the shift from collective to individual responsibility. Based on qualitative material from focus groups, we find that individual responsibility is generally supported, but that the state is still assigned responsibility for providing basic levels of social security. Furthermore, for those groups seen as less capable of acting individually responsible (e.g. the poor or long‐term unemployed) the ‘inducement’ of – or assistance for – individually responsible behaviour by the state is demanded. Overall, while the principle of ‘individual responsibility’ seems to find some resonance among the middle‐class members interviewed, they still try to balance individual and collective responsibility.     

Employment, Industrial Relations and Social Policy: New Life in an Old Connection

The purpose of this paper is to account for the revival of both academic and substantive interest in what had long been seen as an unimportant byway of social policy: the role of social partners, especially trade unions, in the management of national social insurance systems. The answer is found in the budgetary crises facing these systems along with the frequent embedded role of the social partner organizations in their governance. Meanwhile, this welfare state role of trade unions then has implications back on to the conduct of industrial relations. The diversity of national experiences is considered, including the reasons for British exceptionalism on this question. Particular use is made of a comparison between Italy and the Netherlands on the one hand (cases of some success in the role of social partners in managing change in social insurance arrangements), and France and Germany on the other (at the time of writing, cases of stalemate).