Analysis sets out links between bargaining coverage and pay

Europe

New research from the European Trade Union Institute traces the evolution of collective bargaining coverage in European countries between 2002 and 2018 and links it to changes in developments in the pay premia received by workers covered by collective bargaining. Data on collective bargaining in publicly and privately owned companies is assessed separately and the researchers investigate the extent to which pay premia can be explained by trade union density and by the share of workers covered by an agreement. While the coverage rates of collective agreements have generally declined over time, there is greater variation in the trends concerning premia. The analysis shows that a decrease/increase in the coverage rate is associated with a decrease/increase in the relative pay of those covered compared to those who are not covered.

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