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May 8, 2022
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The greater the coverage of employees by collective agreements, the lower the salary differences

The greater the coverage of employees by collective agreements, the lower the salary differences


Collective negotiation.  Photo: MTSS/File.
Collective negotiation. Photo: MTSS/File.

The ILO presented the report on “Social Dialogue 2022: Collective bargaining for an inclusive, sustainable and resilient recovery”, a study based on a review of collective agreements and practices in 80 countries with different levels of economic development and legal and regulatory frameworks in 125 nations.

Through a statement, the organization highlights that “the greater the coverage of employees by collective agreements, the lower the salary differences.”

In this sense, the report indicates that “the process of voluntary negotiation between one or more employers (or their organizations) and one or more workers’ organizations can effectively reduce wage inequality, whether in a company, a sector or an industry. ”.

Reduce differences between men and women

“Collective bargaining can also contribute to reducing wage differences between men and women. More than half (59%) of the conventions examined by the ILO study reflect a joint commitment by employers or their organizations and workers’ organizations (particularly trade unions) to address gender inequality by ensuring equal pay for work of equal value, providing for parental and family leave and addressing gender-based violence at work.

Uruguay, as an example

The report mentions the case of Uruguay. It is indicated that “one third of employees (35%) in 98 countries have their wages, working time and other working conditions determined by autonomous collective bargaining between a trade union and an employer or an employers’ organization”.

“However, there is considerable variation between countries, ranging from more than 75% in many European countries and Uruguay, to less than 25% in approximately half of the countries for which data is available,” compares the ILO in the report.

On the other hand, it is indicated that collective bargaining “has played an important role in mitigating the impact of the Covid-19 crisis on employment and income, helping to cushion some of the effects on inequality and reinforcing at the same time , the resistance of companies and labor markets in supporting the continuity of economic activity”.

It highlights the fact that “the adaptation of public health measures and the reinforcement of safety and health at work, together with paid sick leave and health benefits provided for in many collective agreements, have contributed to protecting million workers.

Telecommuting

Likewise, the collective agreements signed to facilitate Covid-19 teleworking “are evolving towards more durable joint frameworks for decent teleworking and hybrid practices”.

In this sense, they address issues such as: “changes in the organization of work, adequate training and the costs related to teleworking”.

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