Archive for September 16th, 2012

16/09/2012

Crisis: Weakening Collective Bargaining Hurts Recovery, Leads to Social Instability

Human Wrongs Watch

Geneva – Some governments unilaterally reformed collective bargaining arrangements at the height of the economic crisis. Reversing those decisions and providing policy support for collective bargaining would be key to recovery, according to the International Labour Organization.

*Protests in Spain. Photo: Rastrojo (D•ES) | Wikimedia Commons

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Weakening or decentralizing collective bargaining arrangements– as some countries have done during the crisis – is likely to lead to more wage inequalities and social instability, (ILO) has warned.

Decentralizing the process and letting companies negotiate in the absence of strong national and sectoral agreements, puts downward pressure on wages and working conditions, says Susan Hayter, ILO’s senior industrial and employment relations specialist.

“The sharp rise in wage inequality in the United States and the United Kingdom in recent years can be directly linked to the decline in union membership and the associated decline in coverage by collective bargaining agreements.”

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