## 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

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### 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.

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_Source: https://www.imf.org/en/publications/wp/issues/2017/12/14/collective-bargaining-through-the-magnifying-glass-a-comparison-between-the-netherlands-and-45476_