Living and working in Denmark

A key event in 2023 was the collective bargaining negotiations in the private sector. Due to the volatile state of the economy as a result of high inflation, a shift to two-year agreement periods was agreed, in line with labour unions’ wishes expressed at the end of 2022. While there were concerns initially that inflation could lead to potential labour disputes, settlements were reached without significant industrial action, and the collective bargaining system was hailed for its ability to adapt to challenging circumstances. Wages in the private sector increased considerably to match inflation rates. While the year saw no significant industrial action, there were protests in January and February against the government’s decision to remove Big Prayer Day as a national holiday in 2024, with labour unions leading the charge. The protests were, however, unsuccessful, and the holiday was removed.

The year saw stability in social partner organisations, with some mergers and growth in trade union membership. The largest union, 3F, experienced a boost in membership, possibly due to anticipated conflicts in the 2023 negotiations. The government proposed the establishment of a permanent tripartite institution to foster continuous cooperation between the government and the social partners. However, this institution had not been established by the end of 2023.

In order to respond to high inflation and energy costs, the Danish government introduced the Agreement on Inflation Support, allocating funds for various initiatives to support individuals, businesses and cultural institutions affected by rising costs in early 2023. The benefits for individuals were specifically targeted at unemployed people currently receiving other types of social benefits. The social benefits in themselves were, however, not adjusted according to inflation rates, as the adjustment is based on salaries from two years previously. Consequently, several labour unions raised concerns about the purchasing power of benefit recipients. Nevertheless, inflation fell significantly throughout the year: the average harmonised inflation rate in 2023 was 3% compared with 8.51% in 2022.

Regarding working time, a bill was presented to amend the Act on working time based on new EU practices, introducing the obligation to register working hours. The main working time debate centred around demands for more hours from the government and stakeholders, contrasting with employees’ desire for shorter and more flexible working weeks.