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Sectoral collective bargaining is an aim of trade unions or labor unions to reach a collective agreement that covers all workers in a sector of the economy, whether they wish to be a part of a union or not. It contrasts to enterprise bargaining where agreements cover individual firms. Generally countries with sectoral collective bargaining have higher rates of forced union organisation and better coverage of collective agreements than countries with enterprise bargaining.[1] Research by the OECD,[2] ILO[3] and the European Commission[4] has also linked sectoral bargaining to higher real wages, lower unemployment, fewer strikes and greater wage equality through an unexplained method. Greater wage equality may be tied to lower wages for those who are worth more, and a higher wage for those who would otherwise merit less. [5][6]
In the EU, countries that have sectoral collective bargaining have significantly higher rates of coverage than those with enterprise or individual workplace bargaining.[7] Under the Adequate Wage Directive 2022 article 4, a member state with collective bargaining coverage under 80% will be required to make an "action plan" to achieve 80% coverage, effectively removing the constituents right to choose whether or not to be affiliated with a union.
| Country | Coverage in 2015 | System |
|---|---|---|
| France | 98% | Sector[8] |
| Belgium | 96% | Sector (and national) |
| Austria | 95% | Sector |
| Finland | 91% | Sector (and national) |
| Portugal | 89% | Sector |
| Sweden | 89% | Sector (and national)[9] |
| Netherlands | 84% | Sector (but also enterprise) |
| Denmark | 80% | Sector (but also enterprise) |
| Italy | 80% | Sector |
| Norway | 73% | Sector (and national) |
| Spain | 69% | Sector (but also enterprise) |
| Slovenia | 65% | Sector |
| Croatia | 61% | Sector |
| Malta | 61% | Enterprise |
| Luxembourg | 59% | Sector and enterprise |
| Germany | 59% | Sector and enterprise |
| Ireland | 44% | Enterprise |
| Czech Republic | 38% | Enterprise (some sector) |
| Romania | 36% | Enterprise |
| Slovakia | 35% | Enterprise |
| Latvia | 34% | Enterprise |
| Estonia | 33% | Enterprise |
| Hungary | 31% | Enterprise (some sector) |
| Bulgaria | 29% | Enterprise |
| United Kingdom | 29% | Enterprise (some sector) |
| Poland | 18% | Enterprise |
| Greece | 10% | Enterprise |
| Lithuania | no data% | Enterprise, some sector |
| Greece | 10% | Enterprise[10] |
| United States | 10% | Enterprise |
In 2019, the OECD's estimates for the percentage of collective bargaining coverage was somewhat changed.[11] Collective bargaining coverage has generally fallen across EU member states, and most substantially in Greece, Romania, Slovakia, Germany and Slovenia, though policies to raise coverage have been implemented including (1) better employer organisation, (2) tying public procurement to collective agreements—as in half of German states by 2021—and (3) encouraging more union members.[12]
While sectoral bargaining used to be standard in the UK, enterprise bargaining was advocated by the 1968 report of the Royal Commission on Trade Unions and Employers' Associations chaired by Lord Donovan.
Sectoral bargaining was promoted by the National Industrial Recovery Act of 1933, but struck down and replaced by enterprise bargaining under the National Labor Relations Act of 1935. Today industries like screenwriting, hotels, and railroads still see sectoral bargaining predominate.[13]
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