National Collective Bargaining Systems in Europe

Main characteristics Austria Dominance of sectoral bargaining; company bargaining is limited to very few companies. Three-level bargaining system with dominance of bipartite intersectoral bargaining, and complementary bargaining at sectoral and company level. Dominance of company bargaining, with sectoral bargaining in some sectors. Dominance of company bargaining, though some sectors have sectoral bargaining, which is often combined with complementary bargaining at company level. Multi-level bargaining system with dominance of sectoral bargaining and complementary bargaining at company level. Relationship between intersectoral/sectoral and company bargaining Collective agreements can provide 'delegation' or 'opening' clauses for bargaining at company level. Intersectoral agreement provides a framework for maximum wage increases. Normally the latter can not be exceeded at sector or company level except for specific reasons laid down in the intersectoral agreement. A company-level agreement can include lower terms and conditions of employment than agreed at sector level. Some sectoral agreements define the room for negotiations at company level.

Belgium

Cyprus

Czech Republic

Denmark

Some sectoral agreements are more open than others regarding the issues to be negotiated at company level; for instance, some 'minimum-wage' agreements provide for wage negotiations only at company level, though more usually at both levels, while 'normalwage' agreements provide for wage negotiations only at central sectoral level. If there is a sectoral agreement, a company agreement can only improve the situation for the employees. Higher-level agreements define the issues for company bargaining and may determine the conditions under which companies can diverge from standards collectively agreed at intersectoral or sectoral level. Agreements signed at sector and company level can only in exceptional circumstances dilute the benefits obtained at a higher level (sectoral or intersectoral agreements or legislation). Most sectoral agreements contain 'hardship' and 'opening' clauses, according to which companies are allowed to diverge from collectively agreed standards under certain defined conditions and on certain defined issues. Strict hierarchy of bargaining levels on the basis of a 'favourability principle'.

Estonia

Dominance of company bargaining with sectoral bargaining in a few sectors and a bipartite intersectoral agreement on the national minimum wage. Three-level bargaining system with a dominance of tripartite intersectoral bargaining and complementary bargaining at sectoral and company level. Parallel existence of sectoral and company bargaining with no dominant bargaining level. Intersectoral agreements on some specific issues. Dominance of sectoral bargaining; with some company bargaining in certain sectors or companies.

Finland

France

Germany

Greece

Dominance of sectoral bargaining with some company bargaining and a bipartite intersectoral agreement on the national minimum wage and some other aspects of employment conditions. Dominance of company bargaining with sectoral bargaining in a few sectors (mainly public utilities). Intersectoral agreements provide some minimum standards (e.g. minimum wage).

Hungary

According to the Labour Code, in some exceptional cases company agreements can provide for conditions that are more unfavourable for the employees in comparison with those agreed at higher level or guaranteed by law.

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National Collective Bargaining Systems in Europe

Main characteristics Ireland Three-level bargaining system with a dominance of tripartite intersectoral bargaining and complementary bargaining at sectoral (though agreements at this level are few) and company level. Relationship between intersectoral/sectoral and company bargaining National tripartite agreements establish guidelines on minimum and maximum wage increases. They also include provisions for deviation from the national norm company (or sector) level regarding both 'above the norm' pay deals as well as 'inability to pay' arrangements, whereby company agreements may provide lower wage increases than agreed at national level. The two bargaining levels are essentially coordinated, by the provisions of an intersectoral incomes policy agreement as far as wage dynamics are concerned, and by the prevalence of sectoral over company bargaining, since the former sets the framework rules that define the scope of the latter. A limited number of sectoral agreements also contain opening clauses that allow for divergence at company level in certain cases, notably when company restructuring is under way. These clauses do not apply to wages. -

Italy

Two-level bargaining system with a dominance of sectoral bargaining and complementary bargaining at company or territorial level.

Latvia Lithuania

Dominance of company bargaining with sectoral bargaining in a very few sectors. Dominance of company bargaining with sectoral bargaining in a very few sectors and a tripartite intersectoral agreement on the national minimum wage. Dominance of company bargaining with sectoral bargaining in a very few sectors. Dominance of sectoral bargaining with some company bargaining, in particular in larger companies. Dominance of company bargaining with sectoral bargaining in a very few sectors.

Malta Netherlands

Sectoral agreements may contain provisions that allow or oblige employer and works council to negotiate certain issues at company level. Bargaining parties can agree on a suspension of an agreement or parts of the agreements if the company has difficulties. A 2002 amendment to the Labour Code gives employers the opportunity to suspend the application of an agreement in the face of financial hardship. Sectoral collective agreements create a framework for company bargaining. According to the 'favourability principle', company agreements can only improve employment conditions. Opening clauses in sectoral agreements are not allowed. The current tripartite pay agreement allows companies facing economic difficulties to postpone agreed pay increases under certain conditions.

Poland

Slovak Republic Two-level bargaining system with a dominance of sectoral bargaining and complementary bargaining at level.

Slovenia

Three-level bargaining system with dominance of tripartite intersectoral bargaining and complementary bargaining at sectoral and company level.

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National Collective Bargaining Systems in Europe

Main characteristics Spain Collective bargaining is structured at several levels: workplace, company, local, county, provincial, inter-provincial, regional, interregional and national. The greatest number of workers are covered by provincial sectoral agreements, followed by national sectoral agreements. Two-level bargaining system with dominance of sectoral bargaining and complementary bargaining at company level. Relationship between intersectoral/sectoral and company bargaining In principle, lower-level agreements can improve on or worsen standards agreed at higher levels. Many sectoral agreements include opening clause for company bargaining.

Sweden

Sectoral agreements usually define the scope for company bargaining. In principle, company agreements can worsen standards in comparison with the sectoral level. However, in practice, this is very rarely the case. In the case of sectoral agreements, there is usually also complementary bargaining at company level. Sectoral agreements may contain opening clauses that give the bargaining parties at company level the opportunity to depart to a certain extent from the standards determined at sector level. In practice, however, these opening clauses are rarely used and play a minor role.

United Kingdom Dominance of company bargaining; with sectoral bargaining in a very few sectors (eg construction and public services). Norway Multi-level bargaining system with dominance of sectoral bargaining and complementary bargaining at company level in some sectors. In the private sector, intersectoral bargaining plays an important role, in the sense that all agreements between the NHO employers' confederation and the LO and YS union confederations are often negotiated at the same time in a coordinated way. There are also basic agreements at national level that set a certain framework for sectoral and company bargaining. Two-level bargaining system with dominance of sectoral bargaining and complementary bargaining at company level.

Bulgaria

Sectoral agreements include provisions regarding additional agreements at company level. Sectoral agreements also often include 'hardship' clauses, according to which companies with economic difficulties can decrease wages to the level of the national or sectoral minimum wage. There is a strict hierarchy of bargaining levels, with no 'opt-out' options for lower-level bargaining.

Romania

Multi-level bargaining system with dominance of tripartite intersectoral bargaining and complementary bargaining at sectoral and company level. A large proportion of employees are covered only by intersectoral bargaining.

Source: EIRO, Changes in national collective bargaining systems since 1990, Dublin, May 2005 (http://www.eiro.eurofound.eu.int/2005/03/study/tn0503102s.html).

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