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Organised Decentralisation of Collective Bargaining: Case studies of Germany, Netherlands and Denmark

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  • Christian Lyhne Ibsen
  • Maarten Keune

Abstract

This paper investigates different varieties of so called organised decentralisation of collective bargaining in Germany, the Netherlands and Denmark. Organised decentralisation occurs within the framework of sector agreements, which explicitly allow determination of terms and conditions at company level, and often set certain (minimum) level standards as well as procedure that have to be respected. German decentralisation is based on its dual-channel system and extensive use of opening clauses, which make workplace derogation from sector-level agreements possible. Dutch decentralisation is based on the dual-channel system and on framework agreements that allow company level bargaining as long as minimum stipulations are observed. Finally, Denmark combines a single-channel system with framework agreements setting minimum levels. Germany stands out as the least organised of the three. Opening and derogation clauses mean that terms and conditions in multi-employer agreements can be undercut. Vertical control over these derogations has suffered from the dual-channel representation in which works councils have a new role. The Netherlands exhibit some, very limited, elements of disorganisation and stable bargaining coverage. Decentralisation has mainly happened through framework agreements setting minimum levels or through the organised transfer of competencies to works councils. The Danish system leaves a lot of scope for local bargaining, the minimum levels are generally observed and bargaining coverage has not suffered. Based on these findings, we draw the conclusion that organised decentralisation requires articulation that preserves a regulatory function of multi-employer agreements. Preservation of multi-employer agreements in turn requires high bargaining coverage.

Suggested Citation

  • Christian Lyhne Ibsen & Maarten Keune, 2018. "Organised Decentralisation of Collective Bargaining: Case studies of Germany, Netherlands and Denmark," OECD Social, Employment and Migration Working Papers 217, OECD Publishing.
    • Handle: RePEc:oec:elsaab:217-en
    DOI: 10.1787/f0394ef5-en
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    Citations

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    Cited by:

    1. Saskia Boumans, 2022. "Neoliberalisation of industrial relations: The ideational development of Dutch employers’ organisations between 1976 and 2019," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(4), pages 1610-1631, November.
    2. Jens Arnholtz, 2023. "The embedded flexibility of Nordic labor market models under pressure from EU‐induced dualization—The case of posted work in Denmark and Sweden," Regulation & Governance, John Wiley & Sons, vol. 17(2), pages 372-388, April.
    3. Maarten Keune, 2021. "Inequality between capital and labour and among wage-earners: the role of collective bargaining and trade unions," Transfer: European Review of Labour and Research, , vol. 27(1), pages 29-46, February.
    4. Francesco Palma & Yann Thommen, 2020. "Employment Protection Reform in European Labor Markets: The Collective Bargaining Regime Matters," De Economist, Springer, vol. 168(4), pages 541-575, December.
    5. Ramos, Raul & Sanromá, Esteban & Simón, Hipólito, 2022. "Collective bargaining levels, employment and wage inequality in Spain," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 375-395.
    6. Thomas Paster & Dennie Oude Nijhuis & Maximilian Kiecker, 2020. "To Extend or Not to Extend: Explaining the Divergent Use of Statutory Bargaining Extensions in the Netherlands and Germany," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 532-557, September.
    7. Andrea Garnero, 2021. "The impact of collective bargaining on employment and wage inequality: Evidence from a new taxonomy of bargaining systems," European Journal of Industrial Relations, , vol. 27(2), pages 185-202, June.
    8. Keller, Berndt, 2020. "Berufsgewerkschaften als autonome Akteure der Tarifpolitik. Konsequenzen für das System etablierter Arbeitsbeziehungen [Trade unions as autonomous actors in collective bargaining. Consequences for," Industrielle Beziehungen. Zeitschrift für Arbeit, Organisation und Management, Verlag Barbara Budrich, vol. 27(4), pages 437-460.

    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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