Collective wage regulation in northern Europe under strain: Multiple drivers of change and differing responses

Abstract

There has been much recent attention to the upheavals, often externally induced, in collective bargaining and labour market regulation in southern European countries. In this article, we introduce a set of studies of changes, typically employer-driven, in collective wage regulation in northern Europe. We discuss possible drivers of change: contagion from southern Europe, regime competition among the northern countries themselves and/or destabilizing effects of east–north integration, driven by free movement. These drivers interact with internal change dynamics spurring diverging actor responses and institutional outcomes. We outline the common research design, review salient features of wage regulation in six countries, and differences in institutions, production, markets and factor mobility in four sectors. We briefly review findings from the other articles.

Gender differences in the union wage premium? A comparative case study

“…Pattern bargaining is the principal coordinating mechanism in Norway (Dølvik et al, 2018): the internationally exposed but strongly organized metalworking sector takes the role as pattern-setter. Strong mechanisms for coordination, including powerful confederations and tripartite institutions, underpin the model to ensure that 'sheltered' sectors and the public sector follow the lead.…”

“…Procedural mechanisms ensure consistency between agreements at different levels (Stokke, 2008). In the Nordic countries in general, and Sweden and Denmark in particular, Dølvik et al (2018) note that ‘the setting of actual pay, including local increments and other conditions, is increasingly delegated to company-level negotiations’ (p. 12). Dale-Olsen et al (2018) document the increased prevalence of local bargaining in parts of the private sector previously dominated by sectoral negotiations, and even in the public sector.…”

Collective wage bargaining under strain in northern European construction: Resisting institutional drift?

“…Third, how do the actors respond, especially employers? Three potential drivers of change can be envisioned: increasing competition from southern Europe (‘south-north contagion’), strengthened regime competition among the northern, high-cost countries themselves (‘north-north competition’) and the destabilizing effects of east-north integration driven by the free movement of labour, services and capital (Dølvik et al, 2018). OECD trade statistics suggest that south–north trade in construction has declined over the last decade, making it unlikely that increasing competition from southern Europe is a major driver of change.…”

It takes two to tango: mortgage markets, labor markets and rising household debt in Europe

“…Flexicurity lacks traction amongst the working class unless unions and the welfare state can provide a guarantee that the unemployed are protected, particularly as the share of atypical employment grows. 8 Conversely, weaker unions, and narrow collective bargaining coverage, results in weaker wage growth and more precarious employment, particularly for lower income households and labor market outsiders (Dølvik et al, 2018). Esping-Andersen (1990) highlighted that in Nordic social democracies, organized labor was the crucial political actor that delivered another insurance mechanism for adverse employment and income shocks: a universalist welfare state.…”