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Trade Unions, Employer Organisations, and Collective Bargaining in OECD Countries

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Trade Unions, Employer Organisations, and Collective Bargaining in OECD Countries Trade unions, employer organisations, and collective bargaining in OECD countries In all OECD and accession countries, workers and employers can associate to express their interests and concerns and negotiate the terms and conditions of employment. This process of collective representation, negotiation and decision making is a key labour market institution and a fundamental principle and right at work as well as a key pillar of social dialogue at national level. However, since the 1980s, this process of collective representation and negotiation has faced a series of major challenges resulting from, technological and organisational changes, policy reforms, globalisation, the decline of the manufacturing sector, new forms of work and population ageing. Building on a rich set of survey and administrative data and using detailed information collected through new OECD policy questionnaires that were addressed to Labour Ministries and social partners, the 2017 edition of the OECD Employment Outlook provides a rich overview of collective bargaining institutions and practices, as they function today in OECD countries and a selected group of emerging economies. Trade union membership declined by half since 1985 On average across OECD countries, 30% of workers These averages mask huge variations across were members of a union in 1985. The corresponding countries – only 4.5% of workers are unionised in figure today is only 17%. Union members tend to be Estonia and about 6% in Turkey, while about 65% are predominantly male, middle-aged (between 25 and 54 union members in Sweden, Denmark, and Finland, and years old), working with medium or high skills in medium or 92% in Iceland. large firms, and on a permanent contract. A. Trend in trade union B. TUD by employment C. TUD by firm density (TUD) characteristics characteristics 50 All 17.1 All 17.1 Men 17.8 Private 12.1 40 Gender Women 16.2 Sector Public 37.6 15-24 6.6 Small 5.3 30 European Union 25-54 18.1 Age Medium-sized 15.9 55-64 22.4 Japan Firmsize Large 25.6 20 OECD Low 12.4 Manufacturing 18.4 Medium 16.9 Education Business services 11.3 10 High 20.2 United States Public adm. 34.4 Permanent 19.6 Industry Temporary 8.7 Other services 21.7 0 Contract 0 10 20 30 40 50 0 10 20 30 40 50 Source: OECD/ICTWSS Database (https://stats.oecd.org/Index.aspx?DataSetCode=TUD) and OECD Employment Outlook 2017, http://dx.doi.org/10.1787/empl_outlook- 2017-8-en. Employer and business organisations keeping stable Employers are the other key actors of collective Like trade union density, employer organisation bargaining, but much less is known about their density varies considerably across OECD and accession membership in employer and business organisations. countries – it is very low in Central and Eastern Membership to employer organisations (at least in those European countries, Korea, and Turkey, but about 80% countries for which time series are available) shows a in the Netherlands, Sweden, Belgium, and Luxembourg remarkable stability which sharply contrasts with the fall (and 100% in Austria, due to compulsory affiliation for all observed in trade union density. Employer organisations firms). In most OECD countries outside Europe, tend to represent, in terms of employees, more firms in employer associations represent the interests of manufacturing and construction than in services. In most business (i.e., lobby and voice) but do not bargain OECD countries, they are also more representative of collective agreements, with most, if not all bargaining medium and large firms. taking place at the firm level. A. Employer organisation density (ED) B. ED by industry and firm size in the private sector 100 Latest year (↗) Manufacturing 45.9 80 2000 or closest year Business services 60 38.0 Industry 40 Other services 34.4 20 Small 29.9 0 Medium-sized 44.8 Firm size Firm Large 60.2 0 20 40 60 80 100 Source: ICTWSS Database (http://www.uva-aias.net/en/ictwss) and OECD Employment Outlook 2017, http://dx.doi.org/10.1787/empl_outlook-2017-8-en. Membership rates and membership composition are not the only elements to gauge the influence of unions and employer organisations. These rates are closely interlinked with the labour relations system itself and often reflect long historical patterns. However, they are good proxies to measure the ability of unions and employers to represent a broad base of workers and firms or merely a narrow segment of them. Share of workers covered by collective agreements also declining The share of employees covered by collective electricity supply than in business services or other agreements shrank by a fourth, from 45% in 1985 to sectors. Firm size also matters – 26% of workers are 32% in 2016. As with trade union density, the decline in covered by a collective agreement in small firms while collective bargaining coverage was strongest in Central 34% are covered in large firms. In small firms, the and Eastern European countries as well as in Australia, probability of being covered by a collective agreement New Zealand, and the UK. Coverage has been is much lower in the absence of a multi‑employer relatively stable in most of continental European agreement at sectoral or national level as small firms countries except for Germany and, more recently, are much less likely to negotiate and sign a firm-level Greece. Collective bargaining coverage is slightly agreement. higher in manufacturing, construction, and energy and A. Trend in collective bargaining coverage B. CBC by firm characteristics (CBC) in the private sector 100 Manufacturing 35.6 80 Business services 25.5 European Union Industry 60 Other services 32.8 40 OECD Small 26.0 20 Japan Medium-sized 27.7 Firm size Firm United States 0 Large 33.7 0 10 20 30 40 50 Source: OECD/ICTWSS Database (https://stats.oecd.org/Index.aspx?DataSetCode=CBC) and OECD Employment Outlook 2017, http://dx.doi.org/10.1787/empl_outlook-2017-8-en. OECD Collective bargaining webpage For more information on collective bargaining systems and their different building blocks, visit www.oecd.org/employment/collective-bargaining.htm Statistics on trade union and collective bargaining coverage can be accessed using the OECD data warehouse OECD.stat. Contact: [email protected] .
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