{"id":4516,"date":"2023-12-06T11:40:21","date_gmt":"2023-12-06T10:40:21","guid":{"rendered":"https:\/\/www.uni-europa.org\/?post_type=news&#038;p=4516"},"modified":"2023-12-06T16:24:07","modified_gmt":"2023-12-06T15:24:07","slug":"research-shows-higher-wages-through-collective-and-sectoral-bargaining","status":"publish","type":"news","link":"https:\/\/www.uni-europa.org\/news\/research-shows-higher-wages-through-collective-and-sectoral-bargaining\/","title":{"rendered":"Research shows: higher wages through collective and sectoral bargaining"},"content":{"rendered":"<p><span data-contrast=\"auto\">Mid-November, the European Commission released its annual <\/span><a href=\"https:\/\/op.europa.eu\/webpub\/empl\/lmwd-annual-review-leaflet-2023\/\"><span data-contrast=\"none\">review<\/span><\/a><span data-contrast=\"auto\"> on the labour market and wage developments. As many have all felt in the grocery shops, wages did not rise at the same pace as prices did. While many European workers have seen some nominal wage increases, their real wages have declined. In the words of the commission, there is \u201croom for further wage increases\u201d, particularly in the services sectors. Moreover, the EU\u2019s ambition for upwards wage convergence between member states is in jeopardy. In fact, since 2019, wage convergence has stalled completely. <\/span><\/p>\n<p><span data-contrast=\"auto\">One solution, as suggested by the European Commission, is <\/span><b><span data-contrast=\"auto\">strengthening collective bargaining<\/span><\/b><span data-contrast=\"auto\"><strong>, particularly at the sectoral level.<\/strong>\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Not only the European Commission is saying so. A couple of weeks after the publication of its review, a <\/span><a href=\"https:\/\/onlinelibrary.wiley.com\/doi\/full\/10.1111\/bjir.12777\"><span data-contrast=\"none\">study<\/span><\/a><span data-contrast=\"auto\"> published in the <\/span><i><span data-contrast=\"auto\">British Journal of Industrial Relations<\/span><\/i><span data-contrast=\"auto\"> looked at the impact of collective bargaining on wages. The study\u2019s co-authors, ETUI researchers Wouter Zwysen and Jan Drahokoupil, found that workers with a collective agreement generally have higher wages.<\/span><\/p>\n<p><span data-contrast=\"auto\">This is particularly true for sectoral agreements, as they reduce inter-firm competition on wages, enabling them to pay higher salaries and provide better working conditions. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Trade unions, too, are in favour of sectoral bargaining, A UNI Europa <\/span><a href=\"https:\/\/www.uni-europa.org\/wp-content\/uploads\/sites\/3\/2023\/06\/LevelUpSurvey.pdf\"><span data-contrast=\"none\">study<\/span><\/a><span data-contrast=\"auto\"> published this year showed that an overwhelming 94% of the trade union respondents were in favour of stronger sectoral bargaining in their sector.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It is now up to national level politicians to act upon this broad consensus. As required by the EU Directive on Adequate Minimum Wages, most EU countries will be obliged to draw up national action plans to strengthen collective bargaining in their countries in the coming years and reach the 80% target of collective bargaining coverage. These plans should include effective steps towards sectoral bargaining. Without them, the European economy will continue to have \u201croom for further wage increases\u201d and European workers will continue to feel this when paying for their groceries.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mid-November, the European Commission released its annual review on the labour market and wage developments. As many have all felt in the grocery shops, wages did not rise at the same pace as prices did. While many European workers have seen some nominal wage increases, their real wages have declined. In the words of the<\/p>\n","protected":false},"author":39,"featured_media":4517,"comment_status":"open","ping_status":"closed","template":"","categories":[1],"topics":[132,120],"sectors":[],"projects":[],"cross-sector-groups":[],"workers-rights":[],"global-issues":[],"regions":[98],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Research shows: higher wages through collective and sectoral bargaining - UNI Europa<\/title>\n<meta name=\"description\" content=\"The European Commission and experts agree with trade unions: collective bargaining \u2014 particularly at the sectoral level \u2014 is one of the most effective ways of raising wages.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.uni-europa.org\/news\/research-shows-higher-wages-through-collective-and-sectoral-bargaining\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Research shows: higher wages through collective and sectoral bargaining - 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