Abstract
Felix Syrovatka’s book provides an introduction and an in-depth review of the changes labour policies have undergone at the EU level. The author focuses specifically on changes to the EU labour policy agenda – and how it became a focal point of European crisis resolution – from the 2009 financial crisis up until 2017. This reformulation of the agenda is referred to as the ‘new European labour policy agenda’.
Two theses are central to the author’s argument. First, European labour policy has undergone considerable changes since the financial crisis of 2009, which have led to the formation of a complex system of regulations. This system exemplifies what is termed ‘European interventionism’ (Schulten and Müller, 2013; as cited on p. 24) and consists of various crisis-induced mechanisms, institutions, and processes, which were coupled with existing instruments in an effort to impose constraints on national collective bargaining and wage policies. Second, these newly established structures mirror the interests of European industrial and financial capital, which is concerned primarily with a shift of competencies from the national to the European level in the field of labour policies. Following these theses, the research focuses on three research questions:
(i) How did European labour policy change between 2009 and 2017 in the context of European crisis management? What social conflicts were associated with this?
(ii) What role did labour policy instruments play in European crisis management? On which hegemonic crisis narrative are they based?
(iii) Which social forces shaped the debates on a European labour policy at the European level and which strategies and interests were connected with this?
Theoretically, the author locates his research within regulation theory and expands it by means of state and hegemonic theory. Through this historical-materialist lens, the author looks at labour in its central function within capitalism and analyses the power relations at play. The state plays a central role here. While it is conceptualised as an ensemble of state apparatuses in which the balance of power between the social forces of the hegemonic constellation is condensed, the state nevertheless has a ‘strategic selectivity’ inscribed into its structure through which it prioritises certain interests over others (Jessop, 1992, as cited on p. 65). In this sense, the transformation of labour policies can be better understood as the outcome of hegemonic struggles and the ‘strategic selectivity’ mediated through the processes of European integration. The analysis of the context, actors and processes allows the author not only to focus on the institutional level but also to take into account conflict and hegemonic struggles. The process analysis is underpinned by expert interviews and encompasses the identification of certain nodal points, into which the outcomes of the processes are condensed.
The book is structured as follows: Chapter 1 discusses the study of labour policies within the field of Industrial Relations research and defines the key concept of labour policy used in the book, while Chapter 2 consists of a literature review which concludes that European labour policies as a focal point of European crisis resolution have not yet been researched thoroughly. Chapters 3 and 4 set out the theoretical framework and methodology of the analysis. The aforementioned context analysis is laid out in Chapters 5 and 6: Chapter 5 deals with the formulation of European labour policy agendas before the crisis, while Chapter 6 concerns itself with the financial crisis of 2009. It is argued that the previously subordinate role of labour policy at European level changed throughout the crisis when labour policies became the focal point of crisis resolution.
These chapters form the backdrop against which the actors and process analyses take place. One part of Chapter 7 maps out the actors who were crucial in formulating a new European labour policy agenda: the neoliberal actor network, consisting of stakeholders such as BUSINESSEUROPE and national industry associations, and the social regulatory actor network which comprises actors such as the European Trade Union Confederation and national trade union associations. This also serves to illustrate the central places of mediation and condensation of interests at EU level. In this context, the European Commission plays a central role. The other part depicts the nodal points at which the conflict dynamics concerning labour policies in the 2009 euro crisis became apparent. Chapter 8 deals with the new European labour policy agenda and its mode of operation, which is based on three pillars: the European Semester, informal reform pressure by the ECB, and the system of direct conditionality enforced by the so-called Troika. The functioning of the new European labour policy is illustrated by three country case studies (on Greece, France and Italy). In this chapter, the author examines how the goals of labour policy reform targeted the minimisation of unit labour costs at national level, as this was framed as a way of re-establishing the price competitiveness of the Member States hit hardest by the crisis. To achieve this goal, however, national collective bargaining had to be reformed as well, which policy-makers viewed as hindering wage moderation. These changes were legitimised by emphasising economic resilience, which by then had become the new Leitmotiv in European crisis discourse.
The research concludes that the European labour policy agenda was remodelled in a market-liberal way, meaning that productivity-focused principles were inscribed into it, leading to the remodelling of Member States’ labour policies for the sake of competitiveness. These processes were, on the one hand, driven mainly by neoliberal actors, while social regulatory actors were often sidelined. This points towards a strategic selectivity towards the neoliberal actors’ network. On the other hand, another power imbalance is examined, namely between creditor-countries, such as Germany, and debtor-countries, such as Greece. The author argues that Germany has played a central role in pushing the new European labour policy agenda. More generally, these processes culminate in what the author analyses as a shift in the balance of power between capital and labour in favour of the former.
Chapter 9 provides an overview of developments after 2017, focusing on developments towards more socially inclusive legislation within the European Union in light of a general crisis of legitimacy and the rise of right-wing populist parties. It also depicts the influence of the COVID-19 pandemic on labour regulations, such as the introduction of short-time working and benefits to workers. Chapter 10 concludes the research and summarises the main arguments of the book.
Formally, the book seems a little too detailed at times. It is easy to get lost amid the many processes and details, and at times the length of the analysis starts to obscure the argument. One example is the analysis of the nodal points in Chapter 7, which encompasses too many details about the relevant processes. A more condensed way of presenting the argument would have facilitated the reader’s understanding.
Despite these minor shortcomings, overall the book is timely and important. The research shows how the 2009 crisis became a turning point within the EU and analyses its importance for the reformulation of labour policies towards a new, market-liberal regime. Furthermore, the book nicely illustrates the power relations at play, how they shape the European Union and how this influences developments at national level, where the reformulation of labour policies has had a big impact on economies, workforces and labour markets. The interviews conducted by the author help to underpin the argument empirically and provide important insights.
This critical analysis of the EU’s internal mechanisms is clearly of interest to an academic audience working on EU issues. Moreover, the book provides new insights into how national labour policies are influenced by EU-level decisions on deregulating labour relations, which in turn can assist trade union officials and activists in developing strategies to counter these efforts. Overall, the author provides new perspectives on how the EU has changed over recent years and how it functions, making a nuanced contribution to research on the EU and its labour policy agenda.