Denmark experiences relatively high wage increases
Publikováno: 27 September 1998
In order to resolve the deadlock in the industrial conflict which gripped Denmark's private sector in the spring of 1998, the Government intervened. As a result, Parliament passed an act introducing an additional day of annual leave for all workers and an additional two days per year of childminding leave for parents of young children in 1998, rising to three days from 1999 (DK9805168F [1]). Together with the outcomes of company-level bargaining, this has resulted in a pay increase of an average 4.75% in 1998 and 3.5% in 1999.[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-industrial-relations/parliament-intervenes-to-end-major-conflict
According to recent figures, the Danish Government intervention to end the widespread industrial conflict which affected the country in spring 1998 will have a notable impact on 1998-2000 wage developments in the private sector.
In order to resolve the deadlock in the industrial conflict which gripped Denmark's private sector in the spring of 1998, the Government intervened. As a result, Parliament passed an act introducing an additional day of annual leave for all workers and an additional two days per year of childminding leave for parents of young children in 1998, rising to three days from 1999 (DK9805168F). Together with the outcomes of company-level bargaining, this has resulted in a pay increase of an average 4.75% in 1998 and 3.5% in 1999.
The table below sets out the wage increases for 1998-2000 in the bargaining area covered by the Danish Confederation of Trade Unions (Landsorganisationen i Danmark, LO) and the Danish Employers' Confederation (Dansk Arbejdsgiverforening, DA), as estimated by LO in September 1998, based on its own calculations and figures from employers.
| 1998-9 | 1999-2000 | |
|---|---|---|
| Manufacturing sector | 5.63% | 3.40% |
| Service-oriented sector | 3.65% | 3.74% |
| Building and construction | 3.72% | 3.05% |
| Entire LO/DA area | 4.78% | 3.41% |
Source: LO.
Current cost developments, and especially wage increases, worry employers, according to which these factors are closely connected to emerging labour shortages. Employers therefore pin their hopes on the current tripartite talks on reforming active labour market policy (DK9809177F) - especially with regard to limiting the flow of people out of the labour market (through early retirement and leave schemes) and generating more incentives for unemployed people to take up jobs, thus stopping the flow of people into social support schemes. On 25 September 1998, according to the press, LO and DA came to an understanding at the tripartite talks on reducing the period of unemployment benefit from five to four years.
Eurofound doporučuje citovat tuto publikaci následujícím způsobem.
Eurofound (1998), Denmark experiences relatively high wage increases, article.
