dos = 0,85 cm Edited by Susan Hayter & Jelle Visser Collective Agreements: Extending Labour Protection Collective Agreements: Extending Labour Protection Collective agreements are an important source of labour protection in many countries. They set out wages, limits on working hours and leave provisions. In many instances, they also determine the extent to which workers are able to share in the benefits of improved productivity and firm performance. This volume examines the extension of collective Visser & Jelle Hayter Susan by Edited agreements and its use as a policy tool to expand the coverage of labour protection, and shore up collective bargaining. It traces developments in law and practice across a range of countries. It highlights the ways in which countries with different industrial relations traditions are using this tool to afford protection to migrant workers, posted workers, workers in non-standard forms of employment and workers in small and medium size enterprises. At a time when inequality is on the rise, this volume offers renewed insights on how this tool might be used to advance social justice and inclusive labour markets. Inclusive Labour Markets, Labour Relations and Working Conditions Branch (INWORK) International Labour Office 4, route des Morillons CH-1211 Geneva 22, Switzerland Tel: + 41 22 799 67 54 Agreements:Collective Extending Labour Protection ISBN 978-92-2-131609-1 Fax: + 41 22 799 84 51 [email protected] www.ilo.org/collectivebargaining ILO COLLECTIVE AGREEMENTS: EXTENDING LABOUR PROTECTION Edited by Susan Hayter and Jelle Visser COLLECTIVE AGREEMENTS: EXTENDING LABOUR PROTECTION Edited by Susan Hayter and Jelle Visser International Labour Organization • Geneva Copyright © International Labour Organization 2018 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. 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ILO publications and digital products can be obtained through major booksellers and digital distribution platforms, or ordered directly from [email protected]. For more information, visit our website: www.ilo.org/publns or contact [email protected]. Cover page, artwork by Karim Noureldin, Evo, 2008 (detail), coloured pencil on paper 41.8 x 29.7 cm. http://www.karimnoureldin.net This publication was produced by the Document and Publications Production, Printing and Distribution Branch (PRODOC) of the ILO. Graphic and typographic design, layout and composition, proofreading, printing, electronic publishing and distribution, PROD OC endeavours to use paper sourced from forests managed in an environmentally sustainable and socially responsible manner Code: DT P- SCR-REPRO List of contributors Susan Hayter is a Senior Specialist on Industrial Relations at the International Labour Office in Geneva. She received an MSc in Industrial Relations from the London School of Economics in the United Kingdom. Jelle Visser is a Professor at Amsterdam Institute for Advanced Labour Studies (AIAS) and the Bremen International Graduate School for the Social Sciences (BIGSSS). Thorsten Schulten is a Senior Researcher at the Institute for Economic and Social Research (WSI) at the Hans Böckler Foundation in Düsseldorf, Germany, where he heads the WSI Collective Agreement Archive. He is also an Honorary Professor at the University of Tübingen. Reinhard Naumann is Associate Researcher at the Centre for Studies in Socioeconomic Change (DINAMIA) (University Institute, Lisbon) and representative of the Friedrich Ebert Foundation in Portugal. Niklas Bruun is a Professor of Law at the Hanken School of Economics, Helsinki. For several years he held a position as a guest professor at the University of Stockholm where he led a research programme ‘Regulating Markets and Labour’ (ReMarkLab). He is also a former member of the Committee on Freedom of Association (ILO). Shane Godfrey is Coordinator of the Labour and Enterprise Policy Research Group at the University of Cape Town. His research focus is the interface between labour regulation and development in Southern Africa. Adalberto Cardoso is a Professor and Researcher at the Institute of Social and Political Studies of the State University of Rio de Janeiro (IESP-UERJ). Cecilia Senén González is a Doctor in Social Studies, Metropolitan Autonomous University, México City, Researcher for the National Council for Scientific nda Technological Research (CONICET), Lecturer in Labour Relations at the Faculty of Social Sciences, University of Buenos Aires (UBA), Argentina. Bárbara Medwid is Magister in Politiques Comparées, Grenoble, France, and Professor of Political Economy at the National University of La Pampa, Argentina. List of contributors v Table of contents List of contributors . v 1. The application and extension of collective agreements: Enhancing the inclusiveness of labour protection . 1 Susan Hayter and Jelle Visser 1. Introduction. 1 2. Origins and normative principles . 4 3. Extension regimes . 6 4. Practices . 16 5. Reinforcing multi-employer bargaining . 20 6. Enhancing inclusion and reducing inequality . 22 7. Conclusion . 26 2. Extension policies compared: How the extension of collective agreements works in the Netherlands, Switzerland, Finland and Norway . 33 Jelle Visser 1. Introduction. 33 2. The legal basis for extension . 34 3. Origins . 36 4. Aims and objectives . 37 5. Procedure and requirements . 39 6. Exemption policies . 44 7. The scope of extension . 45 8. The size of extension . 47 9. The effects of extension . 51 10. Conclusion . 54 Table of contents vii 3. The role of extension in German collective bargaining . 65 Thorsten Schulten 1. Introduction. 65 2. Recent trends in German collective bargaining . 66 2.1. The decline in bargaining coverage . 66 2.2. Differentiation between sectors and groups of workers . 67 2.3. The impact of the decline in collective bargaining on actual wage developments . 69 2.4. Reasons for the decline in collective bargaining . 69 3. The legal basis of the German extension regime . 71 3.1. The Collective Agreement Act . 71 3.2. The Posted Workers Act . 73 4. The use of extension in practice . 74 4.1. Historical development of the use of extension . 74 4.2. Sectoral composition of extended collective agreements . 76 4.3. The content of extended collective agreements . 77 4.4. Extensions on the basis of the Posted Workers Act . 79 5. The 2014 reform of the legal basis for extension . 79 5.1. The debates on the reform of extension . 81 5.2. The new legal provisions for extension . 82 6. Conclusion: Has the reform of extension law contributed to strengthening collective bargaining in Germany? . 84 4. Reregulating the extension of collective agreements in Portugal: A case study Reinhard Naumann 1. Introduction. 93 2. Industrial relations in Portugal . 94 3. Collective bargaining: Shifting power relations, stagnation and reform . 95 4. The crisis: Memorandum demands changes in extension mechanism . 96 5. The extension mechanism before the reform . 97 6. Statistical data regarding the use of the extension mechanism and its effects on bargaining coverage . 98 7. The political and scientific debate on the extension of collective agreements . 102 8. The impact of the change in the extension regime, 2011–12 . 105 viii COLLECTIVE AGREEMENTS: EXTENDING LABOUR PROTECTION 9. The reform of the reform . 109 10. The ongoing debate . 110 11. Conclusion . 111 5. Extension of collective agreements: The Nordic situation . 119 Niklas Bruun 1. Introduction. 119 2. The Finnish model . 122 2.1. Background . 122 2.2. The present system . 122 2.3. Criticism . 123 2.4. The Finnish system and the European Union . 124 2.5. Public procurement and extension . 125 3. Norway and social dumping . 126 4. The different scenes: Denmark and Sweden . 127 4.1. Background . 127 4.2. The Laval judgment of the CJEU and its aftermath . 129 4.3. Extension as a tool for implementing EU directives . 131 4.4. Public procurement and extension . 131 5. Concluding remarks . 134 6. Contested terrain: The extension of multi-employer collective agreements in South Africa . 179 Shane Godfrey 1. Introduction. ..