Labor Coalitions in Unequal Democracies

In the last decades of the twentieth century, globalization, technological changes, and market reforms weakened labor unions worldwide. In this context, scholars not only predicted labor union decline but also suggested that historical differences between formal-sector insiders (i.e., workers with labor contracts) and outsiders (e.g., informal-sector workers) would intensify in Latin America. Contrary to these expectations, alliances between labor unions and social movements representing outsiders emerged in several countries. In some cases, these coalitions have crystallized into national labor confederations that constitute important political actors. This study asks why insider-outsider coalitions formed in some countries and not in others. It further explores the endurance of these coalitions against the threat of fragmentation by both internal heterogeneity and external tensions deriving from alliances with political parties. The study relies on a comparative historical analysis of four cases—Argentina, Brazil, Chile, and Uruguay—that display variations in outcomes and potential explanatory factors.