ABSTRACT

Political factors significantly influence EPV provision. In most countries, the state is also a major employer, whose employment relations follow government policies. Relatively fixed philosophies and values define and inform state policies that underpin EPV. Union-restrictive liberal market economies, typified by the UK and USA, contrast with coordinated market policies founded on models of social partnership, exemplified by the German experience. For both models, coordination is maintained through governmental institutions such as the law. National traditions provide another relatively stable influencing factor. The UK has a long history of voluntarism or legislative non-intervention in EPV, while many European countries traditionally legislate for collective participation. EPV can also be impacted by domestic considerations and short-term crises precipitated by weak economic performance, unemployment levels or high numbers of industrial disputes.

Governments rely on both legislation and exhortation to support their EPV models. Legislation can require parties to follow the law or it can be enabling, designed to encourage the parties to adopt specific policies. Much depends on the complexion of the administration. In the UK, Conservative legislation has tended to be union-restrictive, while Labour governments have tended to be union-supportive. Recent UK and European EPV legislation and its effects are also examined.