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  • Turkey is an EU candidate that had faster growth rates within the last decade than the EU members as well as a younger workforce. Labor relations in Turkey can be at best defined as chaotic given the high share of informal employment. The government has problematic relations with the unions as well as the business associations. The two largest independent business associations are in an open fight with the government.

    The current government privatized more assets during its successive terms than all the previous governments combined. Turkey receives a meager amount of foreign direct investment with respect to its economy’s size. The current account deficit accounts for a large portion of the government budget and has a chronic character. Inflation is higher than the EU average. Poverty rate and Gini-coefficient take higher values than all of the European countries and the pace of convergence to the EU average is slow.

    Overall, the labor movement is weak and devoid of significant capacity to impose its demands on the national political agenda, yet the current political tensions between business groups and the governments give rise to a large space for maneuver for unions and pro-labor groups. If this potential is properly exploited with further institutional assistance by the European Union, labor unions may enjoy new opportunities to expand their membership and to pursue a more aggressive strategy in coming years.