"SOLIDARITY" Difficulties and opportunities in Poland's market development

Abstract

This thesis aims to explain the trade union ”Solidarity’s” approach issues related to social security for employees, and if the principles of neo-corporatism and liberalism can indicate why there are difficulties in policy making in the polish labor market. By looking at how ”Solidarity” is approaching these issues, I aim to provide some valuable insights on the complexity of decision-making on labor market policies in Poland. Empirical findings confirms that “Solidarity’s” approaches have almost exclusively been concentrated on safeguarding existing employment rather than promoting increased overall employment through flexible forms of contract. “Solidarity” is compared to their former role in the beginning of the transition, i.e. a strong supporter to economic reforms. Solidarity’s has developed a role more representative of the interests of workers in relation to the employers. The signs of neo-corporatist functions and liberalist functions does not confirm any obvious difficulties in policy making, however empirical findings shows that it has undoubtedly created tensions in the industrial relations. One of the main reasons in why the Polish labor market is malfunctioning is that it is driven on the basis of a profit- oriented economy with a fusion of liberal and neo-corporatist elements. This has manifested itself in different ways in the labor market. However as the state still has an influential role in regulating labor market issues it is problematic to draw conclusions on policy making within flexibility and security merely on certain events or milestones on these issues. The Polish labor market has shown that it is still in a process of transformation. Developments in flexible contracts and income security are difficult to follow because many laws and regulations are amended periodically and can be discussed based on equal levels of corporatist as well as liberal functions.