The Social Pact - Canon van Vlaanderen (2024)

Even before the Second World War workers and servants were no longer powerless in dealing with their employers. Thanks to their great following and successful strikes the Socialist and Christian trades unions had won recognition as representatives of employees. From 1919 on, for example, there were in a number of economic sectors joint committees in which trades unions and employers negotiated on wages and working conditions.

But except in a number of large companies the trades unions had little input. For that reason ‘class struggle’ remained more important than consultation. Better social conditions were won by employees through action. The general strike of 1936, which went on for weeks, secured, for example, the first legally binding paid holiday of six days per year.

The Social Pact heralded change. Discussion on an equal footing between employees and employers must become the norm. New laws enshrined that principle in official consultative bodies, from the national Central Economic Council, through joint committees per industrial sector, to works councils in larger companies. Strikes were still not ruled out, but the expectation was that cooperation would be more important than strife.

The fact that the consultation system worked well for the next few decades, was closely connected with postwar economic growth and the rise in productivity. The numbers of social conflicts declined. From 1960 on trades unions and employers entered into interprofessional agreements, in which for all employees in the private sector a basic package of social benefits was agreed.

Even today social security and social consultation determine society to a great extent. But both also face great challenges.

From the 1970s on economic crises complicated the financing of social security. High unemployment levels produced less income and higher expenditure. Employers became less keen on contributing to a system with one of the highest wage costs in Europe. For them international competitiveness became more important than productivity. Some employers even questioned social consultation: they no longer believed in great agreements between trades unions and employers’ organisations.

Moreover, society itself was changing. After the Second World War thanks to a babyboom there was no shortage of labour and ‘full employment’ was a policy aim. But in the 21^st century the babyboomersthe two decades after the Second World War had a high birth rate, hence babyboom. retired and there were less younger people to take their place. As a result pension costs rose, while the contributions of new employees fell.

And then there is the awareness that the people who need social security most, often benefit less than those who are already in a stronger position socially and financially, since that last group is quicker to find its way to all kinds of benefits and advantages. New forms of flexible working also give less access to social security. The problems of poverty turn out not to be easy to solve.