ETUC reveals decline in collective bargaining

The Economic Policy Institute in the US has just published research that reveals the impact of declining union density and collective bargaining on wages. It finds, for example, that falling union membership translates to a loss of $1.56 (€1.47) per hour worked for the average worker, the equivalent of $3,250 (€3,070) for a full-time, full-year worker. Meanwhile, the erosion of collective bargaining lowered the median hourly wage also by $1.56 (€1.47), a 7.9% decline (0.2% annually), from 1979 to 2017. An analysis of wage distribution found that declining unionisation had widened inequality

The ETUC has published the priorities for its Collective Bargaining and Wages Coordination Committee. These cover four main areas - (re)building and enhancing collective bargaining; pursuing upward wage and social convergence; combating in-work poverty, particularly through increasing wages for the lower paid; and increasing solidarity and reducing inequalities. The detailed policy document sets out how the ETUC will follow up on its Pay Rise campaign and includes provisions for a two-year project where the ETUC will aim to support initiatives at national level to boost sector-level bargaining

With the European Commission expected to publish its draft directive on fair minimum wages on 28 October, the ETUC has put together a range of documents and press releases that cover a wide range of arguments in favour of legislation on minimum wages and collective bargaining. The ETUC argues that initiatives to boost pay and strengthen collective bargaining are essential as part of the response to the pandemic and that it is crucial not to repeat the mistakes following the last crisis when collective bargaining was undermined in some countries as part of austerity measures.