Stable as a rock or crumbling beneath the surface? A micro-level analysis of collective interest representation among small and medium-sized enterprises in the Netherlands

As trade unions face increasing difficulties in mobilizing workers, the responsibility for maintaining socio-economic coordination has increasingly shifted to employers’ organizations (EOs) and their engagement in collective bargaining. Yet, large firms have been argued to dominate EOs, to the detriment of small and medium-sized enterprises (SMEs). These intra-capital divisions remain poorly understood, largely due to a lack of direct, systematic evidence on SME representation. Using data on SMEs in the Netherlands (N=901) from the Sustainable SME Representation Survey (SSMERS), we provide a descriptive analysis of EO membership and perceptions of collective interest representation and subsequently address the question: To what extent can differences in EO-membership among SMEs in the Netherlands be explained by (a) the perceptions of representation, (b) organizational resources and constraints, and (c) competitive pressures? We find that the perception of EO representation by SMEs is mildly positive in absolute terms, but decidedly less positive when evaluated relative to large, multinational and export-oriented firms. The explanatory analyses suggest that among SMEs, size and resources have very limited explanatory power regarding EO-membership, nor do experienced competition, the difficulty to find and retain employees, and sensitivity to production stoppages. We do, however, find fairly clear evidence that the probability of EO-membership increases the older the company is, and that the evaluation of interest representation by EOs also matters, as EO-membership is less likely when representation is more poorly evaluated.