ABSTRACT
Politically, the origins of negotiations between governments and trade unions lie in the new balance of class power that emerged in the settlement that followed World War ii. 37 The promotion of Keynesian welfare state policies guaranteed trade unions the right to free collective bargaining while committing governments to ensure high employment levels. Combining full employment with secure and free collective bargaining rights raised the welfare expectations of workers and in turn created demand for institutional and political tools for adjusting these expectations to enable balanced economic growth. Collective bargaining institutions mediated between the welfare expectations of workers on the one hand and the transformation of the economic environment on the other. Operating within the framework of these institutions trade unions gradually adjusted their wage bargaining behaviour — often pushed by governments.
