Sectoral collective bargaining is an aim of
trade union
A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...
s to reach a
collective agreement
A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company (or with a ...
that covers all workers in a sector of the economy, whether they wish to be a part of a union or not. It contrasts to
enterprise bargaining where agreements cover individual firms. Generally countries with sectoral collective bargaining have higher rates of forced union organisation and better coverage of collective agreements than countries with enterprise bargaining. Research by the
OECD
The Organisation for Economic Co-operation and Development (OECD; , OCDE) is an international organization, intergovernmental organization with 38 member countries, founded in 1961 to stimulate economic progress and international trade, wor ...
,
ILO and the
European Commission
The European Commission (EC) is the primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...
has also linked sectoral bargaining to higher real wages, lower unemployment, fewer strikes and greater wage equality through an unexplained method.
European Union
In the EU, countries that have sectoral collective bargaining have significantly higher rates of coverage than those with enterprise or individual workplace bargaining. Under the
Adequate Wage Directive 2022 article 4, a member state with collective bargaining coverage under 80% will be required to make an "action plan" to achieve 80% coverage.
In 2019, the OECD's estimates for the percentage of collective bargaining coverage was somewhat changed. Collective bargaining coverage has generally fallen across EU member states, and most substantially in Greece, Romania, Slovakia, Germany and Slovenia, though policies to raise coverage have been implemented including (1) better employer organisation, (2) tying public procurement to collective agreements—as in half of German states by 2021—and (3) encouraging more union members.
United Kingdom
While sectoral bargaining used to be standard in the UK, enterprise bargaining was advocated by the 1968 report of the ''
Royal Commission on Trade Unions and Employers' Associations
The Royal Commission on Trade Unions and Employers' Associations (also known as the Donovan Commission) was an inquiry into the system of collective UK labour law, chaired by Lord Donovan and heavily influenced by the opinions of Hugh Clegg. Its ...
'' chaired by
Lord Donovan.
United States
Sectoral bargaining was promoted by the ''
National Industrial Recovery Act of 1933
The National Industrial Recovery Act of 1933 (NIRA) was a US labor law and consumer law passed by the 73rd US Congress to authorize the president to regulate industry for fair wages and prices that would stimulate economic recovery. It also e ...
'', but struck down and replaced by enterprise bargaining under the ''
National Labor Relations Act of 1935
The National Labor Relations Act of 1935, also known as the Wagner Act, is a foundational statute of United States labor law that guarantees the right of private sector employees to organize into trade unions, engage in collective bargaining, a ...
''. Today industries like screenwriting, hotels, and railroads still see sectoral bargaining predominate.
See also
*''
A Manifesto for Labour Law''
*
US labor law
United States labor law sets the rights and duties for employees, labor unions, and employers in the US. Labor law's basic aim is to remedy the " inequality of bargaining power" between employees and employers, especially employers "organized in ...
*
UK labour law
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity (legal concept), equity. ...
*
German labour law
German labour law refers to the regulation of employment relationships and industrial partnerships in Germany.
History
*General Commission of German Trade Unions (1892–1919)
*Free Association of German Trade Unions (1897–1919)
*Weimar Constitu ...
Notes
References
* {{cite book , doi=10.1017/9781108617758.014 , chapter=Freedom of Association and Trade Union Autonomy , title=Labour Law , year=2019 , pages=522–570 , isbn=978-1-108-61775-8 , s2cid=243023161 , last1=Collins , first1=Hugh , last2=Ewing , first2=Keith , last3=McColgan , first3=Aileen
*L Fulton, 'Worker representation in Europe' (2015) Labour Research Department and ETUI
Collective bargaining coverage from worker-participation.eu
Labour law
United Kingdom labour law
United States labor law