Poland needs a new development strategy which would better balance the needs of the economy and the needs of society. However, the Polish Confederation of Private Employers Lewiatan (PKPP Lewiatan) must once again recall a painful truth: in reality one can only share out what one has produced. The Social Declaration which we are announcing today is the public confirmation of our readiness to enter into dialogue with society about a Social Agreement, which will improve the quality of Poles’ lives.
Currently in Poland, a public debate is under way assessing the 17 years of transformation as well the country’s development strategy for the next few years. One of its features is the conflict between the supporters of the concept of a liberal economy and those who speak out for social solidarity. The Polish Confederation of Private Employers Lewiatan has analysed this dilemma many times. We believe this to be a false dichotomy: it is not possible to achieve any form of social solidarity without having liberal policies on the economy. This is supported by practical experience from economies of many countries in the world.
At the same time we also note all the negative effects of Poland’s transformation. As business people and as Polish citizens we are convinced of the need to find systemic solutions directed effectively at achieving a balanced development: tying economic growth to increased employment as well as ensuring that all are included in society without any discrimination or exclusion.
The Polish Confederation of Private Employers Lewiatan, as a member of the government’s Tripartite Commission for Socio-Economic issues, would like to work out a strategic social compromise together with other employers’ organisations, trades unions and the government. The purpose would be to increase the rate of economic growth, which would finance the most pressing social needs of our country. The need for such an accord has been proposed steadfastly for several years by PKPP Lewiatan.
To succeed, such an undertaking would require goodwill on all sides engaged in the dialogue, as well as a determination to make difficult compromises. We are certain that the government as well as the trades unions and other employers’ organisations are approaching these discussions on the social accord with exactly this attitude.
The success of this social dialogue will depend on the readiness of all sides taking part to make concessions. We have in Poland some good past experiences in this: The August Agreements of 1980 as well as those made in 1989 as a result of the Round Table negotiations. The PKPP Lewiatan hopes that all players in the negotiations under way will remember that. The aim is now equally ambitious: ensuring a respectable standard of living for all Poles in their own country.
PKPP Lewiatan proposed the need for a social agreement for the first time in the spring of 2003. We supported at that time an initiative encouraging a breakthrough agreement to overcome the crisis in public finances which was threatening Poland, and to resolve several key economic and social issues. The nearly half-year negotiations with the government, employers and trades unions did not however make the turning point, but they ended in a modest agreement in December 2003. It covered several issues relating to socio-economic policy, amongst others: amendments to the law on pensions and social security from the Social Insurance Fund, the law on economic freedom, the rise in salaries and wages in 2004, the government’s proposal for a law on social assistance. Nevertheless, it was the first time that negotiations between interested parties ventured so far into the realm of the economy.
Social dialogue is one of the fundamental values of the European Union, and it is present both in the Accession Treaty, as well as in the main programme documents setting the priority activities for the EU in the next few years. Many social issues can not be resolved solely by efficient administration or through one-off government intervention; they require the engagement of the whole of society, and in particular organisations representing interests of employers and employees.
Ireland provides a good example of an effective social pact: over the course of 30 years several significant social agreements have been made: the National Understandings for Economic and Social Progress were signed in 1979 and 1980.
In 1987, the Irish Congress of Trade Unions proposed a public debate about economic development, public finances, pay and social services. The effect of these negotiations with the employers and the government was the signing of a three-year agreement called the Programme for National Recovery. It helped in reforming public finances, gave the impressive rate of economic growth, and led to an expansion of employment. After its expiry, further such agreements were entered into, helping to strengthen the institution of social dialogue in Ireland. The latest Irish social pact was signed last week. It sets the framework for social development in Ireland up to 2016 and concentrates on the needs of different social groups, including children, pensioners and disabled people.
Spain has also developed the practice of arranging pacts with society. In the National Agreement on Employment of 1981 and the Economic and Social Pact of 1984, trades unions agreed to limit their wage demands while employers undertook to devise a system of new job creation with the National Institute for Employment. In 1979, 1980 and 1983 bilateral framework agreements were signed concerning amongst others, working time, union rights, and the organisation of collective bargaining. Meanwhile, the 1990s were a period of constant bilateral and tripartite negotiations. The tradition of Spain’s social dialogue was underpinned by the Toledo Pact, whose overriding aims were the reform of the social insurance system and the battle with unemployment.
The Social Declaration is yet another important programme document produced by PKPP Lewiatan. The Declaration is a concise presentation of our views on the most important problems of Polish society.
The Polish Confederation of Private Employers Lewiatan
Warsaw, 12 July 2006
The Polish Confederation of Private Employers Lewiatan represents over 3000 companies employing over 600 thousand people organised in regional and sector groups. It campaigns for better conditions for the development of firms and entrepreneurship. It has succeeded in obtaining a reduction to 19% of personal and corporate income tax for entrepreneurs as well as a liberalisation of employment law, and a simplification of the regulations covering commercial activity. It is the only member of UNICE of all Polish business organisations and has its own representation in Brussels.
