Collective Bargaining System Research Articles

A view on ecological and social taxonomy in the EU

The article examines the views in the European Union on ecological and social taxonomy and Reports on this topic submitted to the European Commission. The author shows how the scope of the «Taxonomy Ordinance» is expanding beyond environmentally sustainable economic activities and transferred to the social goals of sustainability. The connection between ecological and social taxonomy is shown and it is noted that social taxonomy was developed in the European Union according to the model of ecological taxonomy. The tasks facing the authors of the Social Taxonomy Report are highlighted. It is emphasized that there are three very important differences between ecological and social taxonomy, which sometimes make it difficult to apply some of the approaches used in ecological taxonomy to social phenomena. The article notes that the social taxonomy is not intended to replace national regulation and must respect the contractual separation that exists in different countries, which means recognition by the EU governing bodies of differences in national labor market models and collective bargaining systems. The author concludes that social taxonomy is designed to support investment in activities that contribute significantly to social goals, in much the same way that environmental taxonomy is designed to support investment in environmentally sound activities.

Collective Bargaining in Fissured Work Contexts: An Analysis of Core Challenges and Novel Experiments

Facilitating access to effective and meaningful collective bargaining is at the heart of the most recent set of reforms to the Fair Work Act 2009 (Cth) (‘ FW Act’) enacted in the Fair Work Legislation Amendment (Secure Jobs, Better Pay) 2022 (Act). In the shadow of these reforms, this article explores who can engage in collective bargaining in Australia and under what conditions. While there are a range of issues impeding the effectiveness of the collective bargaining system under the FW Act, this article focuses on the question of bargaining access under both labour and competition laws and reveals some of the formidable challenges facing employed and non-employed workers alike. It examines how the rise in dependent contractors and the disaggregation of firms—through labour hire, subcontracting, franchising and/or digital platforms—has destabilised the binary conception of employment. The decline in formal employment and the growth of the ‘fissured workplace’ have not only perpetuated the problem of ‘wage theft’, they have altered the way in which wages are set in the first place. Moreover, these factors have exposed the tensions that lie between the regulation of mainstream labour markets through worker-orientated labour legislation and the regulation of product markets and business relationships under consumer-orientated competition legislation. The discussion explores the limitations created by the siloing of regulatory approaches to enabling collective bargaining for workers covered by different statutory regimes. We identify that in both labour and competition laws, meaningful access to collective bargaining in fissured work contexts has been frequently stifled by misplaced assumptions about the nature of the regulatory target and the power distribution in business networks. The article contends that a regulatory response to fissuring (or the problem of ‘the networked firm’) would straddle the labour/competition law divide in various ways, to ensure fissured workers are no longer excluded from exercising collective power by both legal domains.

Automation and unemployment: Does collective bargaining moderate their association?

The stock of robots used in industrial production in the OECD more than doubled over the last two decades. Empirically, the direction of the association between automation and (un-)employment varies across countries. Which factors explain this cross-country variation? We argue that differences in collective bargaining systems play a role. We structure the collective bargaining systems of 37 OECD and EU countries by the degree of coordination of their collective bargaining on the one hand, and by the strength of labor unions on the other hand. These results in four types of collective bargaining systems: highly coordinated with strong unions; highly coordinated with weak unions; weakly coordinated with strong unions and weakly coordinated with weak unions. We use a dynamic panel data approach to investigate whether the association between increased automation and the unemployment rates of different societal groups differs across collective bargaining systems. Our findings are consistent with the view that increased automation is positively associated with unemployment in countries where collective bargaining is weak. In coordinated systems the association is muted, notably for workers with medium skill levels, that is, for the group of workers which is frequently seen to be especially prone to be “automated away”. We cannot unveil indications of insider-outsider behavior of labor unions.

Transnational Company Agreements and EU Law

This article analyses transnational company agreements (TCAs) as a new form of social dialogue in multinational companies and examines why a legal framework for TCAs has not yet been introduced at European level. It argues that a reopening of the discussion on the introduction of such a legal framework should be promoted in order to strengthen the social dialogue in multinational companies and raise social standards in Europe Transnational Company Agreements, Social Dialogue, Multinational Companies, Legal Basis, Austrian Collective Bargaining System

Facts and Fantasies about Wage Setting and Collective Bargaining

In this article, we document and discuss salient features of collective bargaining systems in the OECD countries, with the goal of debunking some misconceptions and myths and revitalizing the general interest in wage setting and collective bargaining. We hope that such an interest may help close the gap between how economists tend to model wage setting and how wages are actually set. Canonical models of competitive labor markets, monopsony, and search and matching all assume a decentralized wage setting where individual firms and workers determine wages. In most advanced economies, however, it is common that firms or employer associations bargain with unions over wages, producing collective bargaining systems. We show that the characteristics of these systems vary in important ways across advanced economies, with regards to both the scope and the structure of collective bargaining.

Defining the problem of low wage growth in Australia and Denmark: From the actors’ perspectives

Low wage growth is a challenge common to many OECD countries including countries with very different institutional systems. This paper utilises and extends Rochefort and Cobb’s (1993) ‘problem definition’ framework to analyse how employer and union representatives in Australia and Denmark explain the causes of low wage growth. Drawing on elite interviews, which allow us to assess the nuance of actors’ perceptions, we find disagreement among Australian actors about the role of the collective bargaining system in contributing to low wage growth. Despite disagreement over the extent of the low wage growth problem in Denmark, both unions and employers expressed confidence in the ability of the bargaining system to resolve it. We argue that the greater degree of consensus in Denmark compared with Australia reflects differences in national institutional systems and knowledge regimes, which have influenced the ways actors in these countries perceive low wage growth.

What Does the Growth of Media Unions Mean for the Broader Labor Movement?

What Does the Growth of Media Unions Mean for the Broader Labor Movement?

Collective Bargaining Systems in Germany and Kazakhstan

Collective Bargaining Systems in Germany and Kazakhstan

The institutional wage adjustment to import competition: evidence from the Italian collective bargaining system

Abstract A growing body of research has contributed to understanding the labour market and political effects of globalization. This article explores an overlooked feature of trade-induced adjustments in the labour market: the institutional aspect. We take advantage of the Italian collectively bargained minimum wage system, which is based on a two-tier structure, whereby the first tier entails setting minimum wages at the national contract level. Using an instrumental variable strategy and exploiting variations in contract-level exposure to trade, we find for the 1995–2003 period that, on average, the surge in imports decreased contractual minimum wages by 1.5%. This impact increases in the share of unskilled workers employed in the contract. This negative institutional effect contrasts with a non-significant effect of trade on total wages, with the latter becoming positive and large only for highly skilled workers.

How collective bargaining shapes poverty: New evidence for developed countries

AbstractAlthough many studies point to the significant influence of collective bargaining (CB) institutions on earnings inequalities, evidence on how these institutions shape poverty rates across developed economies remains surprisingly scarce. This paper explicitly addresses the relationship between CB systems and working‐age poverty ratesbeforeandaftertaxes and transfers in 24 developed countries over the period 1990–2015. Our results show that countries with a more centralized CB system, a more extended bargaining coverage rate and/or a higher trade union density display significantly lower poverty rates. However, these results only hold in a post‐tax benefit scenario. Controlling for country and time fixed effects and a wide range of covariates, our estimates indeed suggest that the poverty‐reducing effect of CB institutions stems from the political strength of trade unions in promoting public social spending rather than from any direct effect on earnings inequalities. Sensitivity tests for endogeneity and overlapping samples support this conclusion.

Radical Change and Institutional Resilience: The Case of Labour Market Reforms in Southern Europe

Over the last decade southern European labour markets have been transformed in a common neoliberal direction, as a consequence of the reforms enacted after the 2008 financial crisis. In our research we investigate to what extent these labour market reforms, aimed at promoting a radical decentralisation of collective bargaining, have actually led to such change. For that purpose, we developed a comparative study of Spain and Portugal, using the notions of path dependency and socio-political coalitions developed by historical institutionalism. Our study leads to the conclusion that institutional trajectories resulting from these labour market reforms merge profound changes with significant resilience. The neoliberal transformations of southern European labour markets have not led to the emergence of new bargaining models, nor to an institutional convergence towards the decentralised collective bargaining systems of liberal market economies. Rather, these reforms have triggered a disorganised fragmentation of collective bargaining systems, resulting in a lack of institutional coherence.

Unions and collective bargaining in Australia in 2021

This article reviews the year across collective bargaining, union policy and strategy, as well as industrial responses to the COVID-19 pandemic. While the industrial environment rebounded slightly from the initial impact of the pandemic in 2020, similar themes persisted throughout 2021, including declining coverage of employees under collective agreements, a difficult bargaining environment in ‘essential’ industries, limited cooperation of the industrial relations parties during developments in the pandemic response and a continued pattern of low wages growth. While trade unions achieved isolated ‘wins’ on key matters, at a system level there continues to be enduring issues of low wages, insecure work and frustrations with the collective bargaining system, while the nation attempts to recover from the impact of the pandemic.

An Uncertain Future for EU-Level Collective Bargaining: The New Rules of the Game After EPSU

Abstract The General Court of the European Union (GCEU) in EPSU and Goudriaan vs. Commission and the Court of Justice of the European Union (CJEU) in the subsequent appeal judgment reached an identical conclusion on a key aspect of the system of EU level collective bargaining. The Courts held that Article 155(2) of the Treaty on the Functioning of the European Union (TFEU) does not impose any obligation on the European Commission to send a social partner agreement to the Council. This is in line with the Commission’s recent interpretation of Article 155(2) TFEU that subordinates the implementation of the European agreements to a positive assessment of their appropriateness. This article critically assesses the GCEU and CJEU rulings in EPSU and argues that they confirm a major break with the praxis of European collective bargaining that will have negative consequences for the social partners’ autonomy and role in the EU. In order to better understand this break, the article examines how and when the Commission changed its approach to European social dialogue, resulting in the new interpretation of Article 155(2) TFEU, and proposes a hypothesis to understand why. The article concludes by describing the consequences of the new reading of Article 155(2) TFEU for the idea of collective autonomy in EU law as well as for the practice of EU level social dialogue and collective bargaining.

Everything we do know (and don’t know) about collective bargaining: The Zeitgeist in the academic and political debate on the role and effects of collective bargaining

This article provides an overview of academic and public policy debates on the role and effects of collective bargaining. The motivation behind this article is that the academic and political debate is – and ever was – characterized by many controversies. It is explained that these controversies often arise because of different disciplinary, theoretical and empirical approaches. It will also be outlined how the empirical and theoretical debates influenced the Zeitgeist in public policy making. Hence, the article provides an overview of the knowledge on the role and effects of collective bargaining as well as how this knowledge influenced and guided (or not) politically initiated institution building and reforms of collective bargaining systems.

Trade Unions in the Nordic Labor Market Models – Signs of Erosion? Introduction to the Special Issue

The Nordic countries are known for being small open economies with large public sectors due to universal welfare states and high living standards across occupations and education levels. This combination has recently been characterized as a balanced growth model in which both exports and internal demand (private and public) contributes to economic growth. In contrast to export-led growth models – as seen in Germany – which have starved wages and thus internal demand to increase the cost competitiveness of the export sector (Baccaro & Pontusson 2016), the Nordic countries seem to be able to do both (Alsos et al. 2019). In 2013, The Economist proclaimed Nordic countries as the world’s next ‘supermodel’ due to the emphasis on market dynamics and income security rather than job tenure – a useful blueprint for labor market policy configured for the rapid technological changes foreshadowed in the twenty-first century (Wooldridge 2013).In more recent years, the OECD has linked the flexibility, high economic performance, and high living standards with independent collective bargaining conducted by strong social partners (OECD 2018, 2019). In all the Nordic countries, the industrial or employment relations systems are based on collective pattern bargaining involving strong trade unions and multi-employer organizations with a minimum of state intervention (Andersen et al. 2015). This system of collective bargaining is underpinned by strong local cooperation between employers and employees (Rasmussen & Høgedahl 2021).Hence, it is evident that the performance and success of the Nordic labor market models rely on strong collective representation through trade unions and employer organizations (Høgedahl 2020). However, although employer density levels seem stable, Nordic trade unions have all to some degree seen a membership decline since the mid- 1990s. This trend begs the question: Do trade unions within the Nordic labor market models showing signs of erosion? If so – why is the union density dropping and what are the implications for the Nordic labor market models?

A CRITIQUE OF COLLECTIVE BARGAINING POLICY IN NIGERIA FROM COLONIAL ERA TILL DATE

This study focused on a critical evaluation of collective bargaining policy in Nigeria from the historical perspective. The main objective of this study was to evaluate the structure and system of collective bargaining in Nigeria since the colonial period. The study adopted a conceptual analysis and theoretical explanation of the origin, development, weakness, and state involvement in collective bargaining policy in Nigeria through a critical review of extant literatures. The study revealed that collective bargaining as machinery for wage determination in the public sector is supposed to prevent the unilateral imposition of wages on the union by the government and vice versa as the case may be. However, it is not often used by the Nigerian government to determine wages rather government relied more on wage commissions, wage tribunals, and civil services administrative rules to determine wages in the public sector. Therefore, collective bargaining appears to be ineffective as a potent tool for wage determination in Nigeria’s public sector. The study also discovered that collective bargaining machinery in Nigeria is weak because of government’s direct involvement in collectivebargaining process to review, amend, even absolutely reject the collective agreement reached between unions and the government representative at the bargaining table. The study, therefore, concluded that collective bargaining is not an effective institution within the context of employment relations in Nigeria.

Restructuring of Finnish Trade Unions – the Growing Importance of Women

The membership profile of Finnish trade unions has changed from male-dominated industrial workers to female-dominated service and public sector workers who are more highly educated. The Finnish labour market is strongly divided into female and male occupations and sectors, and these intersectional differences play an important part in the differentiation of developmental paths. The erosion of membership is mainly due to the rapid growth of the independent unemployment fund (YTK) competing with unemployment funds associated with trade unions. YTK has been much more successful in recruiting private sector male workers than women. Men’s decisions not to join the union are related to the shift in the motivation to unionise from social custom to instrumental reasons. Along with the gender majority shift, union identification has changed, and unions need to carry out ‘identity work’ to attain members. The shift in gender proportions has also had consequences for the collective bargaining system.

An account of the exporter wage gap: Wage structure and composition effects across the wage distribution

AbstractGlobalisation is a prominent driver of wage inequality in advanced economies, and wage differentials paid by the exporter vis‐à‐vis domestically oriented firms play an unmistakable role. In this paper, we measure and decompose the exporter wage gap into several explanatory components by estimating counterfactual distributions for the Spanish economy between 2006 and 2014. To measure the exporter wage gap, an extended Mincer‐type wage equation is estimated along different points of the wage distribution using Unconditional Quantile Regression. Then, we apply the technique of Fortin, Lemieux and Firpo to decompose the exporter wage gap. We find that workers earn higher wages if they work in an exporting firm and that these differences are not constant across the wage distribution: they are greater for middle and middle‐high wages and narrower at the extremes of the distribution. Moreover, the exporter wage gap increased during and after the Great Recession. Characteristics, especially those related to firm and job heterogeneity, play an important role in explaining the gap, mainly in the upper part of the wage distribution. Though in the lower part, wage structure also plays an important role. With some variation across periods, there is a consistent pattern in which occupation, sector and firm size lead to an exporter wage premium resulting in a more unequal wage distribution. These factors are partially compensated by other factors, such as the collective bargaining system.

Half a century of female wage disadvantage: an analysis of Denmark’s public wage hierarchy in 1969 and today

ABSTRACT In June 1969, the Danish parliament passed an extensive law complex, known as the Public Servant Reform of 1969. An important part of the reform was a new wage and classification system into which all public employees were placed. In newer Danish research on the gender wage gap, it is a hypothesis that the reform created a wage hierarchy in the public sector which in general was unfavourable to female-dominated professions, and that this hierarchy largely has persisted to the present due to mechanisms in the collective bargaining system. In our article, we test this hypothesis using graphical analysis and descriptive statistics. Our study supports the existing hypothesis about a gender biased wage hierarchy in 1969. We find that there is a close coherence between the wage hierarchy in 1969 and the wage hierarchy in 2019. However, our analysis also shows how education level explains even less of the traditional female dominated professions’ position in the wage hierarchy in 2019 compared with 1969, and that this is still the case when we take absence patterns and family-friendly benefits into account. That points toward a wage system, which seems unable to adjust to changes in an established profession’s profile.

AS A RESULT OF THE TRANSFORMATION IN PRODUCTION RELATIONS, THE SEARCH FOR A NEW VISION IN TURKISH LABOR UNIONISM

After experiencing its half-century golden period between 1950-2000, the system of trade unionism and collective bargaining, which arose with the concern of turning the class political struggle, which entered the agenda of humanity into a peaceful situation, faced a crisis of existence and function. A change in the understanding of Labor Relations and Business Management, a change in the perspective of working and production with modern human resource management techniques, has led to the need to reproduce the system of trade unionism and collective bargaining. Globalization, international competition and small businesses succumbing to mass production have led to trade union monopolism and cumbersome organizations. Trade union organizations have fallen behind the human resource vision they represent and have begun to fade in the trap of wage unionism. This led to a trend of changes in the way trade unionism was conducted, but the components of new trade unionism did not fall into place. The traditional collective bargaining system, which can find a living space thanks to the introduction of wage costs against the price-quality-sales performance in production, has had to express itself again as this cycle begins to be questioned. The main concerns about trade unionism have changed as follows: It has become vital that unionism is peace-oriented rather than fight-oriented, compromise-oriented rather than debate-oriented, solution-oriented rather than Problem-Oriented, Development and life-oriented rather than wage-oriented, strategy and employment-oriented rather than bargaining-oriented. Therefore, especially in trade unionism, it is clear that there is a need for “trade unionism and community bargaining system reform”, which begins with the qualifications and election times of trade union managers and extends to managing flexible working models and from there to the correct perception and correct interpretation of international company relations and paves the way for entrepreneurship. Keywords: Trade Unionism, Collective Bargaining, Labor, Industrial Relations, Productivity, Innovation, Human Resources