Collective Bargaining Through the Magnifying Glass: A Comparison Between the Netherlands and Portugal
IMF Working Papers, December 14, 2017
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Bibliographic details
- Authors: Alexander Hijzen, Pedro S. Martins, Jante Parlevliet
- Published: December 14, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484332986.001
Overview
- Since the global financial crisis, sector-level bargaining has come under renewed scrutiny.
- The crisis prompted divergent perceptions:
- In Southern Europe, concerns that collective bargaining was an obstacle to labor market adjustment.
- In Northern Europe, a more favourable view; some suggest sector-level bargaining may have helped weather the crisis more easily.
- The paper compares two countries with seemingly similar collective bargaining systems—the Netherlands and Portugal—to deepen understanding of sector-level bargaining systems and their role for labor market performance.
- The analysis documents features that may affect labor market outcomes, including:
- the scope for flexibility at the firm or worker level within sector-level agreements;
- the emphasis on representativeness as a criterion for extensions;
- the effectiveness of coordination across bargaining units;
- pro-active government policies to enhance trust and cooperation between the social partners.
Key Findings
- Sector-level bargaining characteristics affecting labor market outcomes (as documented in the paper):
- Scope for flexibility at the firm or worker level within sector-level agreements.
- Emphasis on representativeness as a criterion for extensions.
- Effectiveness of coordination across bargaining units.
- Pro-active government policies to enhance trust and cooperation between the social partners.
- Subject areas covered:
- Employment, Employment protection, Labor, Labor markets, Wages.
- Keywords highlighted:
- a number of firm, employer association, employment, Employment protection, firm level, firm-level bargaining, Global, Industrial relations, labor market, Labor markets, labor relations, minimum wage, pay clause, social dialogue, Southern Europe, wage inequality, wage-price spiral, Wages, working conditions, WP.
Policy Implications and Areas for Further Analysis
- Consideration of firm- or worker-level flexibility within sector agreements as a channel for labor market adjustment.
- Use of representativeness criteria in extension mechanisms and its potential impact on the coverage and effects of agreements.
- Strengthening coordination across bargaining units to influence aggregate labor market outcomes.
- Role for pro-active government policies to build trust and cooperation among social partners, potentially improving bargaining effectiveness and labor market performance.