Tripartite agreements helped Denmark through the pandemic
A new analysis by Christian Lyhne Ibsen shows how the social partners via a large number of tripartite agreements were instrumental in avoiding economic meltdown and mass layoffs during the Covid-19 pandemic. The analysis is part of an ILO report that exemplifies how tripartite agreements have contributed to solving the challenges during the pandemic.
The Covid-19 pandemic spurred a large number of tripartite agreements in Denmark, which, together with aid packages for companies, largely contributed to avoiding economic collapse and mass layoffs. The progress in the number of tripartite negotiations seems to continue. Since the last Covid-19-related agreement in April 2021, the social partners have entered into two further agreements on parental leave and an agreement to increase labour supply.
However, previous research has shown that tripartite agreements are more of a strategic tool that the parties and the government can use, rather than an institutionalized part of the Danish labour market model. It is thus a strategic decision whether tripartite negotiations will continue at the current pace or return to less frequent agreements. What the Covid-19 crisis has taught us is that the Danish parties are able to enter into agreements when necessary.
The analysis is based on official documents and data in the Danish Covid-19 response, as well as background interviews with representatives of the Danish Employers' Association (DA) and the Confederation of Trade Unions (FH).
Read the full analysis in the ILO report 'Peak-level social dialogue
and COVID-19: The European experience'.