Making collective bargaining more inclusive: The role of extension

Abstract

Using data on collective bargaining coverage for 80 countries, the authors analyse the merits of using the extension of collective agreements as a policy tool for creating a floor for conditions of work and employment. Issued by public authorities, this regulatory instrument is distinctive in that it is based on agreement between independent, autonomous and representative organizations. This gives it some of the advantages of a contract as well as those of a statute. The extension of collective agreements by public authorities can provide coverage for vulnerable workers who may not otherwise have access to social protection, while offering a highly responsive form of regulation that can be adapted to particular circumstances.

The extension of collective agreements in France, Portugal and Spain

“…Although extension provisions exist in most European countries the frequency of use varies. In nine EU countries the use of extension provisions is very common, common or general, whereas in other countries their use is rare or limited, or they are not used at all (Hayter and Visser, 2018).…”

“…Hayter and Visser (2018) identified three different extension regimes: the semi-automatic, the supportive and the restrictive. In semi-automatic regimes there is no need for a public authority to make a decision to extend an agreement.…”

“…Finally, ‘restrictive regimes’ have more demanding criteria that must be met before extensions can be instituted, such as a proportion of workers in a sector who must be employed in affiliated companies. Hayter and Visser (2018) identified 12 countries in this category: Albania, Bulgaria, Czech Republic, Estonia, Hungary, India, Ireland, Israel, Latvia, Norway, Romania and Slovakia.…”

“…Traxler et al (2001) argue that in many European countries state support is the most important variable explaining high bargaining coverage, with administrative extension of collective agreements being the most important instrument. The effect of extension regimes on bargaining coverage is not easy to establish, however (Hayter and Visser, 2018). In most countries where extensions are employed, bargaining coverage is much higher than union membership density, because erga omnes provisions extend agreements to all workers in firms covered by agreements, regardless of union membership.…”

Collective working conditions for everyone?! – Collective provisions with erga omnes effect and statutory extension of collective agreements from a German law perspective

“…For example, the Scandinavian countries, in which the social partners traditionally play a strong role, rely on voluntary methods of extension, 111 whilst many countries that have adopted restrictive regimes are characterised by a strong state tradition with weak institutions for collective interest representation. 112 National laws regulating the extension of collective agreements can define substantive restrictions (e.g. public interest requirement, representativeness of the agreement) as well as procedural preconditions (e.g.…”