Derogation clauses on wages in sectoral collective agreements in seven European countries

Keune, Maarten

Overview

Research report

Derogation clauses on wages in sectoral collective agreements in seven European countries

Published: 22 March 2011

Collective bargaining

This report looks at the specific case of company-level agreements deviating from (inter)sectoral wage agreements. The possibility to deviate from pay norms set under intersectoral or sectoral agreements has received growing attention in the policy debate since the present economic and financial crises started to put many companies under pressure and jobs at risk. The report provides detailed information on regulations and practices for seven EU countries: Austria, Belgium, France, Germany, Ireland, Italy and Spain – see Related content.

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Number of pages

19

Reference no.

EF1087

22 March 2011

Research report

Sector-level bargaining and possibilities for deviations at company level: Austria

The legal basis of collective bargaining in Austria is laid down by the Labour Constitution Act (ArbVG). According to the ArbVG, collective agreements can be concluded only between collective organisations of employers and employees. Therefore, the Austrian labour law systematically benefits multi-employer bargaining. Consequently, the overwhelming majority of collective agreements are concluded at sectoral level. An overview report is available.

22 March 2011

Research report

Sector-level bargaining and possibilities for deviations at company level: Belgium

The Belgian collective bargaining system is highly institutionalised and coordinated. Over 90% of employees are covered by a collective agreement, placing Belgium among the countries with the highest coverage in Europe. Also, the Belgian trade unions have a relatively high level of membership compared with the European average, with over 50% of employees belonging to a union. The same applies to the organisation rate of employers, as over 70% of employees work for an employer that is organised. An overview report is available.

16 February 2011

Research report

Sector-level bargaining and possibilities for deviations at company level: France

The right to collective bargaining is set out in the 1972 French Labour Code. In the last decades, collective bargaining has expanded, partly as a result of government initiatives. The importance of sectoral bargaining increased with the adoption of the 1982 Auroux laws, which obliged the bargaining parties already bound by a sectoral agreement to negotiate pay annually and to discuss the sector’s job classification system and its economic development every five years. The Auroux laws also stimulated company-level bargaining by making annual negotiations on pay and working time obligatory in companies with union representation. An overview report is available.

22 March 2011

Research report

Sector-level bargaining and possibilities for deviations at company level: Germany

The legal basis of collective bargaining in Germany is laid down by the Collective Agreements Act, 1949. Collective agreements can be concluded between employer associations (or individual employers) and trade unions. In contrast, works councils – statutory employee representation bodies elected at workplace and company level – may only conclude works agreements. Under the Works Constitution Act, these ‘shall not deal with remuneration and other conditions of employment that have been fixed, or are normally fixed, by collective agreement’. An overview report is available.

22 March 2011

Research report

Sector-level bargaining and possibilities for deviations at company level: Ireland

In Ireland, collective bargaining is organised as a three-tier system, with a dominance of bargaining and complementary bargaining at sectoral and company level. For over two decades collective bargaining, covering the unionised private and public sectors, has been regulated by national tripartite ‘social partnership’ agreements, drawing up guidelines on minimum and maximum wage increases. There have been seven successive triennial Social Partnership Agreements, or national wage agreements, since 1987. An overview report is available.