The role of collective bargaining in social protection: The Uruguayan case

Most literature on labour relations has concentrated on the roles of unions and left-wing parties in advancing social welfare, while studies on social protection have typically emphasized state-driven processes. This article offers a novelty perspective by examining how collective bargaining influences social protection. Focusing on the case of Wage Councils in Uruguay from 2005 to 2018, the article employs a comprehensive empirical analysis that includes an original collection of 327 collective bargaining agreements and in-depth interviews. The findings indicate that while collective bargaining is a vital mechanism for enhancing overall social welfare, it can also create disparities in access to and the quality of benefits among different groups. This situation contributes to the segmentation of social protection processes.