Fighting “Internal Erosion” Through Social Pacts? Collective Bargaining in Spain From the Great Recession to the Covid-19 Crisis

During the Covid-19 crisis, there was a process of renovation of social dialogue that led to social pacts in Europe and, especially, in Spain. Following the neo-corporatist literature, our argument is that these pacts have been based on the exceptional circumstances of social, political and economic factors that have led to concertation (as a process) rather than to a modification of the existing corporatist foundations. To understand the relevant features, we analyse the changes in the industrial relations system brought about by the labour reforms implemented during the Great Recession. Using data from the Collective Bargaining Agreement Statistics, we propose that the governance (coverage, dominance and control) of collective bargaining depended on a set of institutional practices that have been internally eroded. In conclusion, the effects of social dialogue are transitory, and further transformations would be necessary to achieve a permanent change that restores collective bargaining equilibrium.