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The economic policy decisions of January 24, 1980, had set off a long lasting process of fundamental transformations in the Turkish economy that continue to this day. The restructuring of the economy in line with the “structural adjustment” and “stabilization” policies supported by the IMF and World Bank had a profound impact on work relations and labor unions, first interrupting the process of collective bargaining and then reshaping it by altering the legal framework within which it functioned. The state not only had a decisive role in reorganizing the legal framework that governed collective bargaining, but also intervened directly in labor disputes by outlawing strikes, disrupting the bargaining process. The state also took part in the collective bargaining process as the employer in the public sector, where a centralized process of bargaining functioned as a form of “incomes policy.” The objective of this paper is to highlight the essential and strategic features of the evolution of collective bargaining in Turkey since 1980, which marked a radical transformation in the Turkish economy.