Trade unions and the evolution of labour market policy

Trade unions have long played an important role in the formation of labour market policy in rich democracies. As bargaining actors in the labour market, they have a clear interest in shaping the policies which will influence the conditions present in that sphere. Many trade union movements have also adopted the view that they are political representatives for the broader working or middle class - not merely their own members - and have sought more protective or effective labour market policy as part of that class mission. Trade union action in the political domain, and in labour market policy specifically, is thus a well-studied topic, spanning several disciplines. This chapter summarizes the main theoretical perspectives in this literature and documents several contemporary debates, including around union decline and so-called “dualization”. It emphasizes that there is considerable variation among union movements in their political power and policy preferences in relation to labour market policy.