Collective Bargaining on Employment in Europe: Compromises and Challenges

A large set of recent studies tends to show that employment is currently gaining increased importance in the content of collective bargaining in the European Union member states. The notion of bargaining on employment refers to negotiation processes that may take place among unions and employers’ organizations and, sometimes, the state, and that aim to increase employment levels and to reduce unemployment. In other words, this type of bargaining consists in defining joint rules organizing, or at least attempting to organize, employment volumes and flux, with the objective of preserving or creating jobs, on the one hand, and of assisting the unemployed to find a job, on the other. It is sometimes contrasted with bargaining focused on more traditional issues such as wages or working conditions, because it has a specific objective, trying not only to regulate employment relations, but more generally to regulate employment as such, defined in terms of number of jobs.

In the European Union, and more precisely in the EU-15, this takes place in a context where employment rates steadily remain below those of Japan and the United States, the two countries with which comparisons are traditionally made in the official figures published by the European Commission. Similarly, even if some countries have now virtually achieved full employment, such as Austria and the Netherlands, for instance, average unemployment rates in the European Union remain around 8%, higher than in either Japan or in the USA.

It is important to keep this context in mind when one considers the fact that social partners in the European Union participate in various bargaining processes aimed at building joint solutions for a more efficient labour market. This takes place at several levels: first, at the European level, social partners are invited to participate in the “European employment strategy” that annually defines guidelines for all member states and that stresses the contribution of unions and employers’ organizations in the preparation and implementation of those guidelines at national level; second, within the member states, it also includes tripartite agreements and “social pacts” that reflect the revival of neo-corporatism in European countries since the early 1990s and that include not only wage moderation clauses but also joint projects for employment; third, employment is also taken into consideration at lower levels of bargaining, e.g. at the level of branches, regions and companies.

The article examines collective bargaining on employment issues with a focus on the nature of the processes involved and shows that they represent a specific type of bargaining, both in terms of the rules produced and in terms of the relationships between the actors involved.

The first part briefly summarizes some important data on the context of employment in Europe and key points of the European employment strategy. It also discusses the notion of bargaining on employment and refers to the concept of regulation to analyse this type of bargaining. The second part examines the characteristics of bargaining on employment, successively looking at the subjects negotiated, the uncertainty that accompanies this type of bargaining, the relationship between the state and social partners and, finally, the nature of emerging compromises.

In terms of content, bargaining on employment touches a very wide range of issues, extending from measures oriented towards the protection of existing jobs to programmes to support the unemployed, through changes in work organization intended to preserve or to create jobs. In fact, if there is in Europe a broad consensus on the fact that employment is a priority for all, and here more particularly for states, unions and employers’ organizations, the specific content of bargaining behind the general objective is much less consensual. It is, moreover, highly uncertain as arrangements concluded aim to stimulate employment but very rarely include a clear and quantified commitment to a specific number of jobs.

In terms of processes, bargaining on employment, to the extent that it contributes to the regulation of the labour market, implies intertwined roles between governments and social partners. More generally, neo-corporatist processes have attracted renewed interest in European countries since the 1990s, and the search for joint solutions to regulate the labour market has contributed to these developments. Tripartite programmes for employment along with social pacts reflect the search, on the part of social actors, for transformed trade-offs organizing the labour market, in which the notion of “employability” holds a growing place.

In conclusion, collective bargaining on employment tends to reflect an apparent paradox: it opens greater space for flexibility, for company-based solutions, for a notion of “employability”, but through the means of joint regulation from the state and social partners. As such, it raises original issues on the role of collective bargaining in the definition of the rules organizing current labour markets in Europe, in other words on the role of collective bargaining as a regulator of the labour market, beyond the regulation of employment relationships.