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Explaining the Desire for Local Bargaining: Evidence from a Finnish Survey of Employers and Employees

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  • Anni Heikkilä
  • Hannu Piekkola

Abstract

. This paper describes divergences in employers’ and employees’ opinions on the proper share of local bargaining in contract wage gains in Finland. Employers want the locally bargained wage share to be approximately half of the total wage rise, while the majority of employees would prefer this share to be in the region of 1–24 per cent. Employers in firms that are large, foreign owned or operate in the financial services industry desire the largest locally bargained share of contract wages. Employees in large firms, on the other hand, resist local bargaining. When the firm uses performance‐related pay, employees would prefer a large role for local bargaining in contract wage gains.

Suggested Citation

  • Anni Heikkilä & Hannu Piekkola, 2005. "Explaining the Desire for Local Bargaining: Evidence from a Finnish Survey of Employers and Employees," LABOUR, CEIS, vol. 19(2), pages 399-423, June.
    • Handle: RePEc:bla:labour:v:19:y:2005:i:2:p:399-423
    DOI: 10.1111/j.1467-9914.2005.00300.x
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    Cited by:

    1. Maczulskij, Terhi & Haapanen, Mika & Kauhanen, Antti & Riukula, Krista, 2021. "Dark Half: Decentralized Bargaining and Well-being at Work," ETLA Working Papers 89, The Research Institute of the Finnish Economy.
    2. Michael Rusinek & François Rycx, 2013. "Rent-Sharing under Different Bargaining Regimes: Evidence from Linked Employer–Employee Data," British Journal of Industrial Relations, London School of Economics, vol. 51(1), pages 28-58, March.
    3. Kauhanen, Antti, 2024. "The Effects of the Decentralization of Collective Bargaining on Wage Differences Among Employee Groups," ETLA Working Papers 118, The Research Institute of the Finnish Economy.
    4. Jirjahn, Uwe, 2024. "Corporate Globalization and Worker Representation," GLO Discussion Paper Series 1369, Global Labor Organization (GLO).
    5. Böckerman, Petri & Laaksonen, Seppo & Vainiomäki, Jari, 2006. "Micro-level evidence on wage rigidities in Finland," MPRA Paper 1811, University Library of Munich, Germany.
    6. Alfonso Arpaia & Gilles Mourre, 2012. "Institutions And Performance In European Labour Markets: Taking A Fresh Look At Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 1-41, February.
    7. Kauhanen, Antti & Maczulskij, Terhi & Riukula, Krista, 2020. "Heterogeneous Impacts of the Decentralization of Collective Bargaining," IZA Discussion Papers 13867, Institute of Labor Economics (IZA).
    8. Kauhanen, Antti, 2023. "The Effects of the Decentralization of Collective Bargaining on Wages and Wage Dispersion: Evidence from the Finnish Forest and IT Industries," ETLA Working Papers 105, The Research Institute of the Finnish Economy.
    9. Antti Kauhanen, 2024. "The effects of the decentralization of collective bargaining on wages and wage dispersion: Evidence from the Finnish forest and IT industries," British Journal of Industrial Relations, London School of Economics, vol. 62(2), pages 319-334, June.
    10. Piekkola, Hannu, 2002. "From Creative destruction to Human Capital Growth: Wage Dispersion Effects in Finland," Discussion Papers 822, The Research Institute of the Finnish Economy.
    11. Antti Kauhanen & Terhi Maczulskij & Krista Riukula, 2024. "The incidence and effects of decentralized wage bargaining in Finland," Journal of Labor Research, Springer, vol. 45(2), pages 232-253, June.

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