EUROPEAN ECONOMIC GOVERNANCE AND SOCIAL DIALOGUE

The social partnership in the EU is seriously affected by the financial crisis and subsequent economic recession of 2008-2010 and the 2011-2012 sovereign debt crises in Eurozone. The paper examines social dialogue between unions, employers and governments as a fundamental element of industrial relations at large. However, a framework of this study is a new EU concept of economic governance and response of trade unions to this concept. The position of trade unions with regard to implementation of the economic governance is discussed. The paper provides an overview of the current challenges that confront public authorities and social partners in the EU. The author had elaborated the approach to industrial relations and social dialogue taking into account a comparative approach applied by international institutions in the context of existing socio-economic trends. The research methodology is based on quantitative data collection as well as qualitative analysis of the available information at the EU level and in Latvia. In addition, a comparative analysis was applied while models of trade unions were analysed and the trade unions' practices as a social partner in the decision-making processes in the EU and Latvia have been illustrated. Finally the paper considers how the trade unions performance in Latvia could be encouraged, e. g. through changing tasks and functions and empowering stakeholders to perform efficiently in general and in relation to the new European social and economic governance.