Essay --

Denmark: Co-ordination & Co-operation The performance of Denmark's labour market over the last decade is one to be proud of. Not only has there been strong economic growth, but the fruits of that growth appear to have been equally distributed, with high levels of employment, rising incomes and very low levels of inequality. It is one European country that cannot be accused of being sclerotic. Its labour force is well trained, its jobs market very flexible and it has one of the highest participation rates in Europe. The Danish have right to be proud of their system. Denmark has a long tradition of social dialogue and consensus building through tripartite arrangements and it was this culture of dialogue and agreement, aided by the resources of the welfare state, which enabled it to regulate efficiently. 12. This culture of communication and collaboration also highlights an effective labour and inter-firm cooperative structure, which play an important role in making Denmark a prosperous high-wage, high-productivity economy. Therefore, the ‘Danish model’ of IR challenges the neo-liberal opinion on the inefficiency of trade unions and heavy systems of collective bargaining. The current Danish wage-bargaining system comes from the ‘September Compromise’ of 1899 where an agreement was reached between the employers association Dansk Arbejdsgiverforening (DA) and the trade union Landsorganisationen i Danmark(LO) following months of dispute. This compromise put in place voluntarist systems for negotiating centralised collective bargaining arrangements. Gradually, a complete system of bargaining norms developed and bodies for conflict resolution were established by the state. The arrangements solidified in 1899 form the foundation of the... ...6 and EA's. Therefore, the substantial array of vertical and horizontal coordination devices provide a range of agreements required for a high-wage, high-skill, and high-productivity economy. In conclusion, the Danish model shows that deregulation and neo-liberalist thinking are not essential parts of a formidable competitive strategy for small open economies. Instead, it shows the rewards that social dialogue and consensus building can provide when adapting to various economic factors. It also highlight the benefits coordinated operations bring in achieving conditions fundamental for developing a high-wage, high-productivity economy. While the issues of social dialogue and coordination structures have been answered separately, they are in fact closely related, with the success of these mechanisms significantly improved by the quality of the social relationships.