![]() EKONOMISTI
The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University ![]() |
|
|
Journal number 3 ∘
Nino Sumbadze ∘
The Economic Policy of Social Partnership in Georgia Expanded Summary This article explores the role and development of social partnership and social dialogue in the European Union and Georgia, highlighting their significance for economic reforms, inclusive growth, and democratic governance. In the EU context, social dialogue—defined as institutionalized negotiations between employers\' organizations, trade unions, and sometimes government bodies—has proven essential for promoting productivity, innovation, competitiveness, and social cohesion. The EU’s model is rooted in strong institutional mechanisms and legal frameworks that encourage participation of social partners at national and supranational levels in shaping labor, social, and economic policies. European experience shows that countries with robust traditions of social partnership tend to perform better in times of economic crisis and demonstrate greater resilience in both social and economic dimensions. The Treaty on the Functioning of the European Union (TFEU), specifically Articles 153–155, provides the legal basis for structured consultation and negotiations with representative social partner organizations. These engagements range from tripartite consultations (including EU institutions and social partners) to bipartite dialogues between employers and workers’ representatives, which can influence EU legislation and policy frameworks. The article discusses key institutional formats such as the Tripartite Social Summit, macro-economic dialogue, and the role of sectoral and cross-sectoral negotiations at EU level. The 2016 joint declaration “A New Start for Social Dialogue” illustrates the EU’s commitment to reinforcing social dialogue in four key areas: capacity building, policy design, economic governance (the European Semester), and better regulation. Through this model, social partners not only represent labor and business interests but also contribute to employment generation, fair work practices, and economic development. The European Commission plays an active role in supporting these mechanisms by facilitating structured consultations and promoting balanced stakeholder involvement. In contrast, Georgia\'s experience with social partnership is relatively recent and remains fragmented. The institutionalization of tripartite social dialogue began in 2013 with amendments to the Labour Code and the establishment of the Tripartite Social PartnershipCommission. While this commission, chaired by the Prime Minister, includes government officials, employer representatives, and the Georgian Trade Union Confederation (GTUC), its effectiveness has been limited. In practice, commission meetings are infrequent, and many decisions are delegated to working groups that lack formal decision-making authority. The principles of tripartism—such as equality, consensus, and mutual trust—are often applied inconsistently or symbolically. Georgia’s labor relations continue to be predominantly individual rather than collective, with collective bargaining mechanisms remaining weak and largely unutilized. Despite formal commitments under the EU-Georgia Association Agreement (signed in 2014, entered into force in 2016), and ratification of ILO Convention No. 144 on Tripartite Consultations in 2019, practical progress toward functional social dialogue has been slow. These international obligations require Georgia to strengthen the role and participation of social partners in designing and implementing labor, economic, and social reforms. Nevertheless, implementation gaps persist, including lack of political will, limited institutional capacity, and insufficient legal support for collective labor relations. The article argues that an effective social partnership framework is vital for Georgia’s sustainable economic development and its ambitions toward EU integration. The European model demonstrates that inclusive and institutionalized social dialogue enhances resilience, fairness, and competitiveness. Georgia must therefore move beyond declarative commitments and implement genuine policy reforms to empower social partners, institutionalize dialogue mechanisms at all levels (national, sectoral, regional, and enterprise), and align more closely with EU standards and practices. ConclusionSocial dialogue carried out by empowered social partners is a cornerstone of the European social model and a driver of both economic performance and social justice. For Georgia, which aspires to EU membership, developing a coherent and effective policy of social partnership is not only a domestic priority but also a strategic obligation under international agreements. The article concludes that Georgia must enhance the institutional effectiveness of its tripartite structures, ensure the regular and meaningful involvement of social partners in policymaking, and reinforce the legal and operational foundations of collective bargaining. Only through such measures can Georgia foster inclusive growth, reduce social inequalities, and strengthen its trajectory toward deeper European integration. |