Are collective bargaining models in the Nordic countries able to secure a living wage?Experiences from low-wage industries

Abstract

‘Living wage’ has not been a widely applied concept in the Nordic countries, and there has also been a complete absence of campaigns like those seen in English-speaking countries to introduce a living wage. This is despite the fact that the Nordic countries have not introduced statutory minimum wages that ensure a minimum wage level for all workers. Wage formation is still the domain of employer organizations and trade unions through collective bargaining. There is widespread support among employers and workers for the idea that small wage differences serve the Nordic welfare states well, and that the lowest-paid workers must be guaranteed a decent standard of living. In this chapter, we take a closer look at the trade unions’ strategies for ensuring a minimum wage that members can live on, and the developments that could challenge the effectiveness of collective bargaining in this area.