15 April 2009

Flexicurity and Collective Bargaining - Balancing Acts across Sectors and Countries

Report by Christian Lyhne Ibsen & Mikkel Mailand (April 2009)

The core idea of flexicurity is that by combining high flexibility in the use of labour with high social security for workers it is possible to achieve efficient labour markets without exposing the labour force to social risks. Hitherto, researchers have primarily concentrated on statutory regulation of flexibility and security and its effect on labour markets. However, just as important in many countries is collective bargaining which determines terms and conditions for a significant part of the labour markets in Europe. This report analyses and compares the contribution of collective bargaining and agreements at sector level to the development of flexicurity in print and electrical contracting of the United Kingdom, Denmark and Spain, respectively. The study is primarily based on document analysis of the three countries' collective agreements in print and electrical contracting together with 22 interviews with social partners in the concerned sectors.

The main finding of the study is that collective agreements in especially Denmark, but also the UK contribute to flexicurity whereas the Spanish agreements do this to a lesser extent. In general, framework agreements on wages in all three countries combine flexibility and security. Minimum rates provide a certain degree of income security in shifting jobs and economic downturns while companies can introduce variable pay systems at workplace level. The same logic applies to working time, but here balances between working time flexibility and combination security (work-life balance) arguably depend on local circumstances which complicates things.

To compensate for increased working time flexibility so called social chapters on maternity/paternal leave can be introduced which increase income security and combination security. Also, provisions on sick pay can contribute to these forms of security. The Danish rights exceed what has been given in the two other countries - especially on leave and especially in comparison with Spain.

The three countries likewise differ notably on vocational training and education where rights hereto in Denmark significantly exceed those in the UK and Spanish agreements. The specific form of coordination across sectors in Denmark appears to be key for facilitating agreement on skill development which arguably is of society wide importance.

The authors of the report go on to suggest that necessary preconditions for development of flexicurity in collective bargaining are a certain degree of autonomy for social partners and breadth of possible topics in bargaining together with mutual trust between even social partners.

Since these preconditions are only present in a few countries, the authors are sceptical as for the transferability of experiences between countries. Learning from the positive experiences in the UK and Denmark seems problematic from the get-go as the general weakening of collective bargaining at sector level in many countries continues.

The results of this report do, nonetheless, suggest that under the right circumstances collective bargaining and agreements strongly contribute to the development of flexicurity.

Download the full report (pdf)