This article investigates the drivers of trade union choices in the social policy arena in the age of austerity. Against the background of a political economy literature mostly emphasising trade union support for their stronger constituency – i.e. the ‘insiders’ – the article shows the existence of mechanisms potentially inducing trade unions to broaden their demands. Empirically, the study rests on an in-depth comparative analysis of the political process inducing the two largest trade unions in Argentina and Italy, the CGT and the CGIL, to support ‘pro-outsider’ social policy actively. Besides the comparison of two different geographical areas – though not so different in terms of original welfare state configuration – the main contribution of this article is outlining how the combination of dwindling organizational resources and growing competition from social movements and/or new radical unions leads traditionally insider-oriented unions to reach out to new constituencies and advocate expanded redistributive demands.

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