Collective agreement coverage

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Collective agreement coverage or union representation refers to the proportion of people in a country population whose terms and conditions at work are made by collective bargaining, between an employer and a trade union, rather than by individual contracts. This is invariably higher than the union membership rate, because collective agreements almost always protect non-members in a unionised workplace. This means that, rather than individuals who have weaker bargaining power representing themselves in negotiations, people organise to represent each other together when negotiating for better pay and conditions in their workplace. The number of people who are covered by collective agreements is higher than the number of union members (or the "union density" rate), and in many cases substantially higher, because when trade unions make collective agreements they aim to cover everyone at work, even those who have not necessarily joined for membership.

Contents

Certainly, the causes of higher or lower collective bargaining coverage can vary and are subject to debate. Some common factors that are often identified as influencing the extent of collective bargaining coverage include:

  1. Legal and Regulatory Framework: The legal framework surrounding labor relations, including laws governing unionization and collective bargaining rights, can significantly impact the level of coverage. For example, countries with more permissive labor laws may see higher rates of unionization and collective bargaining coverage.
  2. Economic Conditions: Economic factors such as unemployment rates, economic growth, and industry composition can influence the bargaining power of workers and unions. In times of economic prosperity, workers may have more leverage to negotiate for better wages and working conditions, leading to higher collective bargaining coverage. Conversely, during economic downturns, union membership and bargaining coverage may decrease as companies face financial pressures and workers may be more hesitant to push for concessions.
  3. Labor Market Flexibility: The degree of labor market flexibility, including factors such as the prevalence of temporary or precarious employment, can affect the ability of workers to organize and engage in collective bargaining. Countries with more flexible labor markets may see lower levels of collective bargaining coverage, as workers may face greater challenges in unionizing and negotiating with employers.
  4. Social and Cultural Factors: Social attitudes towards unions and collective bargaining, as well as cultural norms regarding work and labor relations, can play a significant role. In countries where unions are deeply ingrained in the social fabric and enjoy broad public support, collective bargaining coverage may be higher. Conversely, in societies where unions are viewed negatively or where individualism is valued over collective action, coverage may be lower.
  5. Employer Behavior: The stance of employers towards unions and collective bargaining can also impact coverage levels. Employers' attitudes towards unionization, their willingness to engage in collective bargaining, and their use of anti-union tactics can all influence the extent to which workers are covered by collective bargaining agreements.
  6. Union Strength and Tactics: The strength and tactics of labor unions themselves can affect collective bargaining coverage. Strong, well-organized unions with effective bargaining strategies are more likely to secure collective bargaining agreements and higher levels of coverage for their members.
  7. Globalization and Technological Change: Globalization and technological advancements can also shape collective bargaining coverage. Changes in the structure of industries, outsourcing of jobs, and increased competition from international markets can impact the bargaining power of workers and unions, potentially leading to shifts in collective bargaining coverage.

These factors interact in complex ways and can vary significantly across countries and regions, contributing to ongoing debates about the causes and consequences of collective bargaining coverage levels.

Causes

The causes of higher or lower collective bargaining coverage are widely debated. Common causes are often identified as including the following:

By country

Collective bargaining coverage in OECD countries [1]
CountryCoverage (%)Year
Flag of Australia (converted).svg  Australia 61.22018
Flag of Austria.svg  Austria 98.02019
Flag of Belgium (civil).svg  Belgium 96.02019
Flag of Canada (Pantone).svg  Canada 31.32020
Flag of Chile.svg  Chile 20.42018
Flag of Colombia.svg  Colombia 15.72016
Flag of the Czech Republic.svg  Czech Republic 34.72019
Flag of Denmark.svg  Denmark 82.02018
Flag of Estonia.svg  Estonia 19.12021
Flag of Finland.svg  Finland 88.82017
Flag of France.svg  France 98.02018
Flag of Germany.svg  Germany 54.02018
Flag of Greece.svg  Greece 14.22017
Flag of Hungary.svg  Hungary 21.82019
Flag of Iceland.svg  Iceland 90.02019
Flag of Ireland.svg  Ireland 34.02017
Flag of Israel.svg  Israel 26.12012
Flag of Italy.svg  Italy 100.02019
Flag of Japan.svg  Japan 16.82019
Flag of South Korea.svg  South Korea 14.82018
Flag of Lithuania.svg  Lithuania 26.62021
Flag of Latvia.svg  Latvia 27.12018
Flag of Luxembourg.svg  Luxembourg 56.92018
Flag of Mexico.svg  Mexico 10.42019
Flag of the Netherlands.svg  Netherlands 75.62019
Flag of New Zealand.svg  New Zealand 18.62020
Flag of Norway.svg  Norway 69.02017
Flag of Poland.svg  Poland 13.42019
Flag of Portugal.svg  Portugal 77.22021
Flag of Slovakia.svg  Slovak Republic 24.42015
Flag of Slovenia.svg  Slovenia 78.62017
Flag of Spain.svg  Spain 80.12018
Flag of Sweden.svg  Sweden 88.02018
Flag of Switzerland (Pantone).svg   Switzerland 45.02018
Flag of Turkey.svg  Turkey 8.52019
Flag of the United Kingdom.svg  United Kingdom 26.92019
Flag of the United States.svg  United States 12.12020
OECD average [a] 32.12019
Flag of Costa Rica.svg  Costa Rica [b] 10.32019
  1. estimated value
  2. non-OECD

Sweden

Collective agreement coverage in Sweden was in 2017 90% of all employees (in the private sector 83%, in the public sector 100%). [2] [3] In 2017 union density was 69% (64% in the private sector, 79% in the public sector).

United States

In the United States in 2015 there were 14.8m union members, and 16.4m people covered by collective bargaining or union representation. Union membership was 7.4% in private sector, but 39% in the public sector. In the five largest states, California has 15.9% union membership, Texas 4.5%, Florida 6.8%, New York 24.7% (the highest in the country), and Illinois had 15.2%. [4]

See also

Notes

  1. "Collective bargaining coverage". OECD.Stat. 9 June 2021. Archived from the original on 2017-11-03. Retrieved 9 June 2021.
  2. Anders Kjellberg (2019) Kollektivavtalens täckningsgrad samt organisationsgraden hos arbetsgivarförbund och fackförbund, Department of Sociology, Lund University. Studies in Social Policy, Industrial Relations, Working Life and Mobility. Research Reports 2019:1, Appendix 3 (in English) Table F
  3. Anders Kjellberg (2019) "Sweden: collective bargaining under the industry norm" Archived 2019-07-25 at the Wayback Machine , in Torsten Müller & Kurt Vandaele & Jeremy Waddington (eds.) Collective bargaining in Europe: towards an endgame, European Trade Union Institute (ETUI) Brussels 2019. Vol. III (pp. 583-604)
  4. See Bureau of Labor Statistics, ‘Union Members – 2015’ (28 January 2016)

References