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Local Bargaining and Employers' Co-operation Options

In: Collective Bargaining and Wage Formation

Author

Listed:
  • Anni Heikkilä

    (The Research Institute of the Finnish Economy)

  • Hannu Piekkola

    (The Research Institute of the Finnish Economy)

Abstract

Finnish employers want the locally bargained wage share to be approximately half of the total wage rise, which is significantly more than the locally bargained share in the current centralised wage agreement. However, employers' attitudes towards local bargaining vary a lot depending on firm characteristics. The aim of this paper is to explain employers' opinion of the proper locally bargained share of contract wages and also about who they think should decide on this wage share. It is shown that employers in large firms and in the financial services sector demand the largest locally bargained share of contract wages. When low competition in the product market is considered a challenge, employers may favour centralised wage setting instead of local bargaining. Employers are willing to involve employees in local bargaining decisions when the firm size is 30–299 employees or when the firm is profitable and operates in the service sector.

Suggested Citation

  • Anni Heikkilä & Hannu Piekkola, 2005. "Local Bargaining and Employers' Co-operation Options," Springer Books, in: Hannu Piekkola & Kenneth Snellman (ed.), Collective Bargaining and Wage Formation, pages 103-119, Springer.
    • Handle: RePEc:spr:sprchp:978-3-7908-1598-6_8
    DOI: 10.1007/3-7908-1598-5_8
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    Cited by:

    1. Heikkilä, Anni & Piekkola, Hannu, 2004. "Explaining the Desire for Local Bargaining: Evidence from a Finnish Survey of Employers and Employees," Discussion Papers 910, The Research Institute of the Finnish Economy.
    2. Asplund, Rita, 2007. "Finland: Decentralisation Tendencies within a Collective Wage Bargaining System," Discussion Papers 1077, The Research Institute of the Finnish Economy.

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