Collective bargaining between workers’ and employers’ representatives (trade unions and employers’ associations) is an important regulatory tool for setting or influencing wages and working conditions for most workers in the EU. However, over the past decades, bargaining coverage has dropped in many EU Member States following decentralisation trends and reforms to increase wage-setting flexibility adopted during the Eurozone crisis. Today, the policy pendulum has swung back, with the promotion of collective bargaining playing a central role in the 2022 Minimum Wage Directive (MWD). Article 4 requires Member States where collective bargaining coverage is below 80% to establish a framework of enabling conditions and to develop an action plan to promote collective bargaining and increase coverage.
This study seeks to support national governments and social partners in identifying factors conducive to high and stable collective bargaining coverage and appropriate ways to promote it, as they are currently working on putting Article 4 of the MWD into practice. It will do so by carrying out an in-depth analysis of what factors influence the level and evolution of collective bargaining coverage, including an assessment of their relative weight and the extent to which they can be shaped by policy. CEPS is responsible for two of the three components of the project (Lot 2 and Lot 3).
Lot 2 focuses on Determinants of collective bargaining coverage and examines which factors – or combinations of factors – are associated with maintaining or achieving high and stable coverage, which of these can be influenced by governments or social partners, and which may offer the most promising levers in the short and medium term to increase coverage. The research combines quantitative analysis of key variables associated with changes in bargaining coverage across EU Member States, using existing comparative datasets, with qualitative case studies. While the quantitative analysis will estimate the magnitude and relative contribution of different factors, the case studies will place these findings in context by examining how combinations of factors operate in practice, including the influence of historical legacies, ideational elements and broader political-economic dynamics, as well as the scope for policy intervention.
Lot 3 involves In-depth analysis, policy relevant findings and reporting, and aims at identifying policy-relevant lessons. It will bring together and systematically assess evidence from previous research activities in order to understand which measures to promote collective bargaining have proven effective or ineffective, what factors have supported or hindered their implementation, and what lessons can be drawn from both successful and unsuccessful approaches. It will also examine the extent to which specific policy initiatives can be transferred to other national contexts, and what adjustments might be needed to strengthen collective bargaining coverage going forward.
The project will culminate in an integrated report presenting the findings in an accessible format for dissemination to national governments, social partners and a broader audience.
