Tripartism in the context of "Nordic model"

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⭐ Core Definition: Tripartism

Tripartism is an economic system of neo-corporatism based on a mixed economy and tripartite contracts between employers' organizations, trade unions, and the government of a country. Each is to act as a social partner to create economic policy through cooperation, consultation, negotiation, and compromise. In Tripartism, the government has a large role in the economy and engages in negotiations between labour unions and business interest groups to establish economic policy.

Tripartism became a popular form of economic policy during the economic crisis of the 1930s. Tripartism was supported by a number of different political movements at this time, including: Catholic social teaching, fascism, and democratic political movements. Tripartism is a prominent economic policy in Europe, particularly where Christian democratic parties influenced by Catholic social teaching have held power; it is a core part of the Nordic model seen in the economic systems of Scandinavia and the Benelux that were put in place by social democratic governments. Another example is the national income policy agreement in Finland. Globally, tripartite institutions, such as Ghana's Tripartite Committee and Singapore's National Trade Union Congress, have been implemented into economic systems. Tripartite agreements are an important component in practical labour law, since they cover not only wages but also issues such as policies on benefits, holiday, work hours, and worker safety.

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πŸ‘‰ Tripartism in the context of Nordic model

The Nordic model comprises the economic and social policies as well as typical cultural practices common in the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden). This includes a comprehensive welfare state and multi-level collective bargaining based on the economic foundations of social corporatism, and a commitment to private ownership within a market-based mixed economy – with Norway being a partial exception due to a large number of state-owned enterprises and state ownership in publicly listed firms.

Although there are significant differences among the Nordic countries, they all have some common traits. The three Scandinavian countries are constitutional monarchies, while Finland and Iceland have been republics since the 20th century. All the Nordic countries are however described as being highly democratic and all have a unicameral legislature and use proportional representation in their electoral systems. They all support a free market and universalist welfare state aimed specifically at enhancing individual autonomy and promoting social mobility, with a sizable percentage of the population employed by the public sector (roughly 30% of the work force in areas such as healthcare, education, and government), and a corporatist system with a high percentage of the workforce unionized and involving a tripartite arrangement, where representatives of labour and employers negotiate wages and labour market policy is mediated by the government. As of 2020, all of the Nordic countries rank highly on the inequality-adjusted HDI and the Global Peace Index as well as being ranked in the top 10 on the World Happiness Report.

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Tripartism in the context of Member states of the International Labour Organization

The International Labour Organization (ILO), a tripartite specialized agency of the United Nations that sets international standards related to work, has 187 member states, as of FebruaryΒ 2025. Established in 1919 as a result of the Treaty of Versailles, the ILO was the first agency to be incorporated into the UN in 1946, is the third oldest pre-existing UN agency, the fourth oldest existing multilateral organization and the only remaining organization with direct links to the League of Nations.

The organization was established with 42 states, of which 29 states are considered founder members as signatories to the Versailles Treaty; another 13 states, not signatories, were invited to be members and granted status as founder members.

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Tripartism in the context of Labour movement of Singapore

The National Trades Union Congress (NTUC) spearheads the labour movement of Singapore, which represents almost a million workers in the country across more than 70 unions, affiliated associations and related organisations. Singapore runs on a tripartism model which aims to offer competitive advantages for the country by promoting economic competitiveness, harmonious government-labour-management relations and the overall progress of the nation.

NTUC, along with its tripartite partners, the Singapore National Employers Federation (SNEF) and Ministry of Manpower (MOM), work together to tackle issues such as job re-creation, raising the effective retirement age, skills training and upgrading of the workforce, promotion of fair and progressive employment practices, and a flexible wage system, among other labour-related issues.

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Tripartism in the context of Social corporatism

Social corporatism, occasionally referred to as social democratic corporatism or liberal corporatism, is a form of economic tripartite corporatism based upon a social partnership between the interests of capital and labour, involving collective bargaining between representatives of employers and of labour mediated by the government at the national level. Social corporatism is present to a lesser degree in the Western European social market economies. It is considered a compromise to regulate the conflict between capital and labour by mandating them to engage in mutual consultations that are mediated by the government.

Generally supported by nationalist and/or social-democratic political parties, social corporatism developed in the post-World War II period, influenced by Christian democrats and social democrats in Western European countries such as Austria, Germany, the Netherlands, Denmark, Finland, Norway and Sweden. Social corporatism has also been adopted in different configurations and to varying degrees in various Western European countries.

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Tripartism in the context of National Trades Union Congress

The National Trades Union Congress (NTUC), also known as the Singapore National Trades Union Congress (SNTUC) internationally, is the sole national trade union centre in Singapore. NTUC leads the labour movement of Singapore, comprising 59 affiliated trade unions, 5 affiliated trade associations, 6 social enterprises, 6 related organisations and other enterprise partners.

The NTUC helms May Day celebrations and organises an annual rally in support of workers' solidarity and commitment to a tripartite partnership. Since its inception, the NTUC has had a close symbiotic relationship with the People's Action Party (PAP), the current ruling political party of the country.

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