Cross-sectoral coordination and regulation of wage determination in northern Europe: Divergent responses to multiple external pressures

Abstract

We examine changes in collective wage regulation in five northern European countries since 2000, with a focus on coordination across sectors, articulation between levels and determination of wage floors. Earlier change in the functioning of wage bargaining arrangements in Germany placed pressure on other northern countries. In Finland, employers recently instigated a shift from tripartite incomes policy to manufacturing-led pattern bargaining, with increased scope for decentralized negotiations. This made Finnish arrangements more similar to their Nordic counterparts, which have been marked by modest adaptations. Divergence continues in wage floor regulation. Increased statutory generalization of collectively agreed minimum wages has moved Germany and Norway closer to Finland, while Denmark and Sweden still rely solely on collective bargaining. The multi-faceted employer and state approaches to wage regulation are not consistent with recent claims of a neoliberal transformation across the northern coordinated economies.