Wage moderation more likely in centralised bargaining / Eurofound News, October 2015

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In the EU, around two-thirds of workers are covered by some form of collective agreement. Wage-bargaining regimes across Europe are increasingly under pressure to become more flexible – flexibility here meaning moving from more centralised forms of bargaining (at national or sectoral level) to decentralised forms (at the company level). The goal of this is to keep pay rises in line with productivity, hence securing the competitiveness of European businesses. However, research just published by Eurofound finds that wage moderation is more likely to occur when bargaining is centralised and coordinated across the economy. The reason, suggests the research, is that high levels of employment are a goal of centralised bargaining systems, one not shared by uncoordinated bargaining taking place at company level. Read Pay in Europe in different wage-bargaining regimes at http://bit.ly/1KVSayD

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