Is the term used in the countries of the European Union to describe an agreement between government and either or both of the social partners to regulate the economy. Social pacts have been an important component of the industrial relations system in several European countries, including Belgium, Ireland, and the Netherlands. They are associated with a system of corporatism and typically involve agreements limiting the growth of incomes in return for government policies that promote economic growth or which protect welfare expenditure. [See incomes policy, social dialogue, and social partnership.]
Subjects: Human Resource Management.