Denmark - Collective bargaining

Abstract: The chapter embarks on an analysis of the regulatory system of collective bargaining in Denmark and its particularities, which naturally encompasses the voluntarist nature of the model. The analysis gives a brief historical overview of the major developments, ie. legislative reforms and institutional changes contributing to the current framework for collective bargaining. It then takes a closer look at the social partners as the legislative power on the labour market and the reason behind this structural development. The voluntarist nature and its consequences are then described with reference to the types of collective agreements and their coverage with particular emphasis on non-unionised worker and crown servants. Although the regulation of pay and working conditions is almost entirely left to the social partners by way of collective bargaining, the chapter describes how the legislator can provide assistance to the partners by mediating in industrial disputes and intervene by passing legislation, which has been criticised by the ILO committee. The focus is then directed towards the challenges faced by the Danish model due to the globalisation of the labour market with reference to the free movement of service providers and the mobility of workers.
The chapter ends with a conclusion assessing the main advantages of the Danish model and its shortcomings.