Reducing wage inequality requires an understanding of the importance of labour market institutions, in particular statutory minimum wages and sectoral collective bargaining. This article argues that the impact of labour market institutions on wage inequality is enhanced by specific strategies of unions and employers. Empirical evidence is provided from the high-wage automotive sector and the low-wage retail sector in Czechia and Slovakia. Against the backdrop of the erosion of collective wage bargaining, trade unions have prioritised increases in the national statutory minimum wage as a mechanism for reducing wage inequalities. Trade unions’ leverage on minimum wages can compensate for their declining influence on wage distribution via collective bargaining.

The paper studies how unions used two types of resources, namely, access to national legislation/policy and to collective bargaining, to improve working conditions in healthcare and in agency work in Czechia and Slovakia. It examines how these two types of institutional resources interact, whether they are potentially in competition and how this affects union revitalization. Unions’ post-2008 strategies in the two sectors converged towards political action due to their preference for legislative regulation of issues previously bargained about or unregulated. The paper argues that extensive use of institutional safeguards contributes to improving working conditions; however, prioritizing political action may weaken other types of union strategies and undermine future access to collective bargaining. In other words, extensive utilization of one institutional resource (legislation) may gradually weaken other types of resources (collective bargaining) and thereby undermine the overall revitalization capacity of trade unions.

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