Visitors Now:
Total Visits:
Total Stories:
Profile image
By Human Wrongs Watch
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Crisis: Weakening Collective Bargaining Hurts Recovery, Leads to Social Instability

Monday, September 17, 2012 10:21
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Human Wrongs Watch

Geneva – Some governments unilaterally reformed collective bargaining arrangements at the height of the economic crisis. Reversing those decisions and providing policy support for collective bargaining would be key to recovery, according to the International Labour Organization.

*Protests in Spain. Photo: Rastrojo (D•ES) | Wikimedia Commons

.
Weakening or decentralizing collective bargaining arrangements– as some countries have done during the crisis – is likely to lead to more wage inequalities and social instability, (ILO) has warned.

Decentralizing the process and letting companies negotiate in the absence of strong national and sectoral agreements, puts downward pressure on wages and working conditions, says Susan Hayter, ILO’s senior industrial and employment relations specialist.

“The sharp rise in wage inequality in the United States and the United Kingdom in recent years can be directly linked to the decline in union membership and the associated decline in coverage by collective bargaining agreements.”

But when there is significant policy support for collective bargaining mechanisms, such as in Denmark, Finland, France, the Netherlands and Sweden, the gap between the highest and lowest wage earners is significantly lower, adds ILO in an analysis.

Up to the Parties

According to Hayter, the position of the ILO is clear: it is up to the parties themselves to decide at what level they wish to negotiate.

“During the crisis, many employers, governments and trade unions recognized that collective bargaining was an effective tool to adjust to economic conditions and stay in business.”

National and sectoral agreements provided a framework within which firms could tailor their response, thus reducing costs while at the same time preventing layoffs and protecting earnings.

Examples

As Hayter explains, examples are to be found in countries in Europe such as Austria, Germany and Belgium and elsewhere in countries such as South Africa, Brazil and Argentina.

“Far from dragging businesses down and reducing productivity, there is considerable evidence that collective bargaining agreements actually reduce wage inequality and can contribute to productivity and competitiveness,” ILO underlines.

“When changes in work organization are negotiated with workers and their representatives, improved company performance is often the result, says Hayter.”

According to ILO, while wages and working time remain the primary issues for collective bargaining, the process is increasingly being used to address the specific concerns related to the global economic crisis. Pay is being linked to productivity, and flexible working time arrangements are being negotiated to balance work and family life.

Training, Lifelong Learning

“And to respond to technological change and rising job insecurity, collective bargaining agendas now also include training and lifelong learning.

That’s worked particularly well in Europe, where countries with strong social partners and strong institutional support for collective bargaining have had the most success in setting up frameworks for continuing vocational training, benefiting both enterprises and workers in times of continuing economic uncertainty.”

*Image: Protests in Spain. Photo: Rastrojo (DES) | Wikimedia Commons.

Read also:
.

European Recession, U.S. Slowdown Hit Developing Countries

Finance’s Ethics: a Leap into the Past

It Is Not a World Crisis But a Western Crisis

.

Banks and Politics Do Not Mix Well

Does It Make Sense to Saw Off the Branch on Which You Are Sitting?

The Untrammeled Dictatorship of the Banks in Europe

The Uneven Fight Between the Banks and the Peoples

“God, It’s Great To Be A Banker!”

“Human Capital Is Every Bit as Important as Financial Capital”, UN Now Realizes

Filed under: Market Lords, Middle East, Others-USA-Europe-etc., The Peoples



Source:

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.