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Is the Erosion Thesis Overblown? Evidence from the Orientation of Uncovered Employers

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Author Info

  • John Addison

    ()
    (University of South Carolina and GEMF)

  • Paulino Teixeira

    ()
    (University of Coimbra, Portugal and GEMF)

  • Katalin Evers

    (Institut für Arbeitsmarkt- und Berufsforschung, Bundesagentur für Arbeit)

  • Lutz Bellmann

    (Friedrich-Alexander-Universität Erlangen-Nürnberg and Institut für Arbeitsmarkt- und Berufsforschung, Bundesagentur für Arbeit)

Abstract

It is sometimes claimed that the coverage of collective bargaining in Germany is considerably understated because of orientation, a process whereby uncovered firms profess to shadow the wages set under sectoral bargaining. Yet importantly, at a time when collective bargaining proper has been in retreat, little is known of corresponding trends in the frequency of indirect coverage, still less of the degree to which wages are aligned in practice. Using nationally representative data for 2000–2010, this paper charts the extent of orientation in the uncovered sector, and tracks average wages across bargaining regimes as well as changes in wages from switches in regime. It is reported that orientation is growing with the decline in sectoral bargaining and that orienting firms do pay higher wages than their counterparts in the collective bargaining free zone. Yet in neither case – frequency nor remuneration – is the degree of ‘compensation’ recorded other than partial.

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Bibliographic Info

Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2012-07.

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Length: 36 pages
Date of creation: Jun 2012
Date of revision:
Handle: RePEc:gmf:wpaper:2012-07

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Keywords: Orientation; Erosion of Collective Bargaining; Uncovered Sector; Sectoral Bargaining; Wages; Regime Shifts.;

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References

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  1. Haipeter, Thomas & Lehndorff, Steffen, 2009. "Collective bargaining on employment," ILO Working Papers 433128, International Labour Organization.
  2. Addison, John T. & Bryson, Alex & Teixeira, Paulino & Pahnke, André & Bellmann, Lutz, 2010. "The State of Collective Bargaining and Worker Representation in Germany: The Erosion Continues," IZA Discussion Papers 5030, Institute for the Study of Labor (IZA).
  3. Wolfgang Ochel, 2003. "Decentralising Wage Bargaining in Germany – A Way to Increase Employment?," CESifo Working Paper Series 1069, CESifo Group Munich.
  4. Gabriele Fischer & Florian Janik & Dana Müller & Alexandra Schmucker, 2009. "European Data Watch: The IAB Establishment Panel - Things Users Should Know," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(1), pages 133-148.
  5. Virginia Doellgast & Ian Greer, 2007. "Vertical Disintegration and the Disorganization of German Industrial Relations-super-1," British Journal of Industrial Relations, London School of Economics, vol. 45(1), pages 55-76, 03.
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Citations

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Cited by:
  1. John Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2014. "Indicative and Updated Estimates of the Collective Bargaining Premium in Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(1), pages 125-156, 01.
  2. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2013. "Collective Bargaining and Innovation in Germany: Cooperative Industrial Relations?," GEMF Working Papers 2014-01, GEMF - Faculdade de Economia, Universidade de Coimbra.
  3. Bellmann, Lutz & Gerner, Hans-Dieter & Hübler, Olaf, 2013. "Investment under Company-Level Pacts," IZA Discussion Papers 7195, Institute for the Study of Labor (IZA).
  4. John Addison & Paulino Teixeira & Jens Stephani & Lutz Bellmann, 2012. "Can German Unions Still Cut It?," GEMF Working Papers 2012-19, GEMF - Faculdade de Economia, Universidade de Coimbra.

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