06 Aug Collective Agreement Coverage Oecd
Collective Agreement Coverage OECD: Understanding What It Is All About
The acronym OECD stands for Organisation for Economic Co-operation and Development. It is an intergovernmental economic organization with 38 member countries, founded in 1961 to stimulate economic progress and world trade. One of the areas where OECD has been actively involved is in the promotion of collective bargaining rights and collective agreements.
Collective bargaining refers to the negotiation that takes place between an employer and a group of employees (usually represented by a labor union) regarding working conditions and compensation. Collective agreements are legally binding documents that outline the terms and conditions of employment that have been agreed upon by both parties. In some countries, collective agreements are also referred to as a collective labor agreement or a union contract.
The coverage of collective agreements is an important indicator of the level of collective bargaining in a country. It measures the percentage of workers who are covered by a collective agreement, either through membership in a union or through an extension of the agreement to non-unionized workers. The higher the coverage of collective agreements, the more workers benefit from the protections and working conditions negotiated by unions.
The OECD has been collecting data on collective bargaining and collective agreements since the 1970s. According to its latest report, the average coverage of collective agreements among its member countries was 68% in 2018. However, there are significant variations among countries. For example, in Norway, more than 90% of workers are covered by a collective agreement, while in the United States, only 12% of workers are covered.
The benefits of collective agreements go beyond the workplace. They also contribute to social cohesion and reduce income inequality. When workers have a say in their working conditions, they are more likely to be satisfied with their jobs and less likely to experience discrimination. This, in turn, leads to higher productivity and economic growth.
The OECD encourages its member countries to promote collective bargaining and the coverage of collective agreements. It also provides policy recommendations and best practices based on its research. For example, the OECD recommends that governments ensure that collective bargaining is accessible to all workers, that collective agreements are respected by employers, and that there is a balance between flexibility and security in the labor market.
In conclusion, collective agreement coverage is an important indicator of the level of collective bargaining in a country. The higher the coverage, the better the protection for workers and the stronger the social cohesion. The OECD plays an important role in promoting collective bargaining and providing policy recommendations to its member countries. By ensuring that workers have a voice in their working conditions, we can create more equitable and prosperous societies.