This paper discusses the formation, character and contradictions of social partnerships. We report on a specific initiative, the Local Learning and Employment Networks (LLEN) established by the Victorian Government in Australia in 2001, documenting the nature of this initiative and how it is playing out. We draw attention to some of the tensions that exist between different agencies, including different agencies within government. Through this detailed case study it is possible to identify parallels between LLEN and other social partnership initiatives developing in other parts of the world. This process of situating a specific Australian partnership within the wider trend to social partnerships permits a more contextualised analysis. It shows the way social partnerships are developing as a consequence of education reform shaped by neo-liberal governance and various patterns of compliance and resistance to this political rationality.