Collective bargaining in developing countries

Abstract

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Union Membership and Collective Bargaining: Trends and Determinants

“…Collective bargaining refers to a negotiation process between unions (or other independent bodies representing workers' interests) and employers or employers' associations that leads to collective agreements determining pay, working conditions, and other labor practices. Although collective bargaining has many facets, two main aspects are the level at which it occurs and the coverage rate of collective agreements (Lamarche 2015;OECD 2019). Negotiations can take place at various levels, ranging from the national or multi-sector level over the sector or industry level to the company or firm level, and multilevel bargaining is also possible.…”

“…Generally, collective bargaining systems have become more heterogeneous since (Brandl and Bechter 2019). A slight tendency toward decentralization can also be observed across developing countries, with some countries having stable levels of collective bargaining while others experiencing drastic reforms and large changes (Lamarche 2015).…”

“…They point out that in countries where multi-employer bargaining collapsed and was replaced by singleemployer agreements (like the UK and New Zealand), the bargaining coverage rate fell substantially since fewer firms decided to recognize unions and negotiate with them. In developing countries, too, bargaining coverage was affected by changes in the level at which collective agreements are negotiated and signed (Lamarche 2015).…”

Structural reforms to boost growth and living standards in Argentina

“…In these cases, the inability to adjust wages can shift the adjustment onto employment (De Serres and Murtin, 2013). In Argentina, collective bargaining tends to take place at the level of entire sectors and covers more than 70% of workers although only 30% of workers are unionised (Lamarche, 2015). Empirical work based on Argentinian data suggests that more decentralised bargaining at the firm level would increase productivity by providing more flexibility to respond to market changes (Lamarche, 2013).…”

Unemployment, rural–urban migration and environmental regulation

“…In addition, I exploit the fact that environmental taxes affect the outside option of the bargainers (which is key in the Nash bargaining process) differently than other taxes. And finally, some evidence suggests that developing countries have a long tradition of determining wages and working arrangements through collective bargaining (Lamarche, ), despite considerable heterogeneity in terms of the coverage rates. For instance, in the 1970 and 1980s, industry‐wide collective bargaining was widespread in Latin American countries such as Argentina, Mexico, and Venezuela, but currently bargaining is shifting towards decentralization, allowing negotiations at the firm level.…”