This is part of the ‘Rules of the Game in the Labour Market: Industrial Relations, the Bargaining System and Income Policies in the 2000s’ Research Project, financed by the Finnish Work Environment Fund, and carried out jointly by ETLA (Research Institute of the Finnish Economy) and Labour Institute for Economic Research. We would like to thank Summer Seminar 2003 participants at the University of Jyväskylä and an anonymous referee for comments on an earlier draft. The usual disclaimer applies.
Explaining the Desire for Local Bargaining: Evidence from a Finnish Survey of Employers and Employees†
Article first published online: 1 JUN 2005
Volume 19, Issue 2, pages 399–423, June 2005
How to Cite
Heikkilä, A. and Piekkola, H. (2005), Explaining the Desire for Local Bargaining: Evidence from a Finnish Survey of Employers and Employees. LABOUR, 19: 399–423. doi: 10.1111/j.1467-9914.2005.00300.x
- Issue published online: 1 JUN 2005
- Article first published online: 1 JUN 2005
Abstract. This paper describes divergences in employers’ and employees’ opinions on the proper share of local bargaining in contract wage gains in Finland. Employers want the locally bargained wage share to be approximately half of the total wage rise, while the majority of employees would prefer this share to be in the region of 1–24 per cent. Employers in firms that are large, foreign owned or operate in the financial services industry desire the largest locally bargained share of contract wages. Employees in large firms, on the other hand, resist local bargaining. When the firm uses performance-related pay, employees would prefer a large role for local bargaining in contract wage gains.