Minimum Wage Systems and Changing Industrial Relations in Europe

Background and objectives

The objective of this project is to investigate the complex relationships betweencollective bargaining and diverse country systems for setting minimum wages.Existing studies highlight the substantial variation in systems for settingminimum wages across the EU, including use of statutory provision or collectivebargaining, use of single or multiple rates and differences in trends in therelative level of the minimum wage. This project aims to extend existing knowledgeby focusing on the specific roles of social partner organisations (employersand unions) in shaping minimum wage systems and thereby draw relevant recommendationsfor social dialogue policy and practice. What are the varied strategies of tradeunions and employer associations regarding the development of minimum wagesin each country? Does minimum wage setting by statutory provision crowd outcollective bargaining? What are trade union and employer strategies towardsminimum wage setting in collective agreements (binding and non binding)? Whatfactors influence the relationship between a national minimum wage and minimumrates in collective agreements? What is the influence of objectives regardinglow pay and gender pay equity on social dialogue on minimum wages?

Approach

Collection of qualitative and quantitative data in a 5-country comparativeanalysis (Croatia, Germany, Spain, Hungary, United Kingdom) is designed to furtherdevelop expertise in the functioning of minimum wages in diverse country modelsof industrial relations. Fieldwork will involve selected case studies of sectoraland organisational collective agreements and include interviews with socialpartner representatives. Secondary data will be collected on pay, collectiveagreements and union membership at national, sectoral and organisational levels.Additional contextual research includes state-of-the-art reviews of an additionalfour EU member states, drawing on published data. There is currently strongpolicy interest at member state and EU level regarding the implications of diverseminimum wage systems for improving the social dimension of economic growth inthe European region and this 12-month project is designed in response to thisinterest. A key goal of the research is to disseminate the new knowledge andto contribute to improved social dialogue in this area.