Pressure on the Danish model of labour market regulation
Discussion paper produced for FTF Denmark
Research paper by Søren Kaj Andersen, Mikkel Mailand & Christian Lyhne Ibsen
Abstract
The Danish model of labour market regulation was the centre of attention for both national and local media during the summer 2012 – immediately caused by the collapse of the hardly begun tripartite negotiations and a blockade against a restaurant called Vejlegården. Underneath these occurrences there are several profound challenges concerning the development of the Danish model. The aim of this research paper is to describe these challenges and raise questions in relation hereto.
The paper is divided into seven thematic sections and begins with the internal challenges for the Danish model and then moves in the direction of external issues:
- Declining union density – the pragmatic employees
- The future main organisations and tripartite negotiations
- The necessary interaction between the collective bargaining system and politics
- Renewals of collective agreements during times of tight economic latitude
- Flexicurity in crisis?
- Foreign workforce and the pressure on the labour market regulation
- Wage – no longer an exemption in the EU-regulation
Finally the thematic sections are discussed in relation to the core characteristics of the Danish model. In general it is argued that the Danish labour market model changes over time; the model is not static but dynamic.
However, strong organisations characterised by high levels of density among unions as well as employer organisations can be considered as a precondition for the existence of the model. Therefore this issue will logically be central in a discussion concerning the perspectives for the future of the Danish model.
The research paper can only be downloaded in Danish (pdf).