New European Study Highlights Trust as Cornerstone of Industrial Relations
A new EU-funded research project confirms what Nordic Financial Unions (NFU) have long emphasised: trust between social partners is the key to successful cooperation and creates better outcomes. The findings from the TRUE Europe project reflect the core principles of the Nordic model — that lasting collaboration is built on dialogue, strong institutions, and mutual respect.
NFU served as an associated partner in the Trust in relations between unions and employers in Europe (TRUE Europe) project, led by Linnaeus University in Sweden. The project examined how trust shapes cooperation between unions and employers across eight European countries and three key sectors: metals, transport, and banking.
After two years of research, TRUE Europe has now released its Final Comparative Report. The findings show that where trust exists between management and employee representatives, cooperation tends to produce significant benefits. Workplaces built on trust experience more constructive dialogue, better access to training, and improved working conditions. They are also more effective at preventing conflicts and developing flexible, mutually beneficial solutions. This, in turn, enhances employers' productivity and competitiveness while strengthening employees' engagement, influence and job security.
Building Trust, Strengthening Democracy
The research also underlines that trust between social partners does not develop on its own; it requires active cultivation through strong institutions, ongoing dialogue, and shared responsibility. These foundations enable quick adaptation to change, effective conflict resolution, and the preservation of social stability.
In countries such as Sweden and Austria, the research highlights that collective bargaining and social dialogue are supported through strong institutional structures. These structures promote a negotiation culture grounded in openness, transparency, and predictability, enabling social partners to address challenges together and achieve outcomes that benefit both parties.
NFU has long underlined the central role of trust, and the TRUE Europe findings closely mirror the experiences of Nordic financial unions. Strong unions and robust collective bargaining systems strengthen both people and the economy. In the Nordic model, trust serves not only as an outcome but also as a necessary foundation, developed over decades through strong institutions, regular interactions, and close cooperation at the national, sectoral, and workplace levels.
NFU’s General Secretary, Carin Hallerström, who spoke during a panel at the project’s final conference in October, stressed the importance of these insights in today’s political climate:
“For the Nordic countries, this trust-based approach remains a defining strength, especially at a time when Europe and the wider world are facing rising political polarisation and democratic pressure. The Nordic model shows that trust built in workplaces extends beyond them – contributing to broader societal trust and democratic resilience.”
Learn more about the TRUE Europe project and access the Final Comparative Report here: The TRUE Europe Final Comparative Report is now published
