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How the Global Financial Crisis Drove Down Collective Bargaining  

Posted by hkarner - 26. Oktober 2015

Date: 25-10-2015
Source: The Wall Street Journal

The U.S. isn’t the only country where collective bargaining has come under pressure. The global financial crisis put a widespread dent on it in recent years, a new analysis of 48 countries shows.

Between 2008 and 2013, the share of employees covered by collective-bargaining agreements fell an average of 4.6% in the 48 countries assessed, while union density dropped an average 2.3%, according to the International Labor Organization study.

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The decline, which follows a longer-term slide in union membership rates in many countries, reflects a variety of factors. Legislation allowed some financially troubled companies to opt out of their bargaining agreements. The recession also made it more difficult to renew existing pacts. Meanwhile, some governments made it harder to negotiate national and sector-wide agreements reached by union federations and employer groups, favoring company-level pacts instead.

The study makes the case that wage inequality is rising, so public policies are needed to shore up collective bargaining and make it more inclusive. It says that bargaining coverage varies widely across a broader group of 75 countries, ranging from one or two percent of employees in Malaysia and Ethiopia to nearly 100% in Belgium and France. Den Rest des Beitrags lesen »

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