FIGURES from a new ILO database on industrial relations show that collective bargaining has come under pressure in many countries since the start of the global financial crisis in 2008.The new IRData tool includes indicators on trade union density and collective bargaining coverage in 75 countries. It was launched together with a brief highlighting the major trends on collective bargaining.
According to that brief, collective bargaining coverage varies significantly from country to country.

When analysing the impact of the global financial crisis on collective bargaining, the brief looked at a sample of 48 countries, and showed that, on average, there was a 4.6 per cent drop in collective bargaining coverage between 2008 and 2013, compared with an average decline of 2.3 per cent in union density for the same group of countries.

In countries where coverage has declined, this was mainly due to the cessation of national general agreements, a roll-back in policy support for multi-employer bargaining, and policy-induced decentralisation (e.g. legislative changes that: prioritised company over multi-employer agreements; introduced the possibility for companies in trouble to opt out of sectoral agreements; and allowed for the recognition of non-union bargaining representatives at the enterprise).

The sharpest declines (by an average of 21 per cent) were seen in countries hardest hit by the crisis, such as Cyprus, Greece, Ireland, Latvia, Portugal and Romania.

But while many countries experienced a decrease in coverage, there were ten countries that advanced in the opposite direction and extended coverage. This was the case for example in Finland, where the social partners signed a national general agreement; and in The Netherlands, where collective bargaining expanded and collective agreements were extended in new sectors.

Then there is a small group of countries (Austria, Belgium, Canada, France and Italy) where bargaining coverage remained stable. These are countries where collective bargaining was a key element of the crisis response, including through the negotiation of “job saving agreements”.

“Collective bargaining can play a key role in translating growth into social progress,” says Philippe Marcadent, Chief of the ILO’s Conditions of Work and Employment Branch.
“Governments should be at the forefront of promoting collective bargaining and the use of social dialogue as the means to that end. This includes guaranteeing an enabling legal framework that recognises, promotes and upholds the rights of unions and employers’ organisations to have their voices heard, as well as specific measures to promote collective bargaining.”

The brief looks at other issues, including the level at which collective bargaining takes place.
Multi-employer bargaining at the sectoral or national level remains the most inclusive form of coverage.

The reason collective bargaining coverage in some countries exceeds trade union density is because of the inclusive practices of unions, employers (having signed a collective agreement, applying the terms to union and non-union workers) and of governments (extending collective agreements signed by representative parties to all employers in a branch or sector).

No significant difference can be found between collective bargaining coverage for men and women.