Two Cheers for Corporatism, One for the Market: Industrial Relations, Wage Moderation and Job Growth in the Netherlands

Abstract

The success of economic policies in the Netherlands with regard to enhancing job growth and bringing down unemployment has attracted international attention, especially against the background of persistent high unemployment in many continental European countries. The paper considers the role of Dutch industrial relations, and in particular trade unions, in the turnaround from the ‘Dutch disease’ to the current ‘employment miracle’. It is argued that Dutch unions, weakened by the severe jobs and membership crisis of the early 1980s but assured of continued institutional support, have chosen a public‐regarding ‘jobs before wages’ strategy. The two main features are continued wage moderation and negotiated flexibility of working hours, particularly part‐time jobs. The paper stresses the importance of co‐ordination within the unions as well as between unions and employers, and compares the contents, causes and consequences of the two central accords of 1982 and 1993. Finally, it considers the renewal of Dutch corporatism in an environment of increased market pressure.

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