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Product and labour markets have strong links. Moreover, labour-management relations and negotiations are central to the functioning of labour market institutions, mostly in advanced economies.

The monograph carries out an in-depth analysis of a fundamental aspect of unionised labour markets: Those elements are crucial in unions-firms negotiations: Domenico BuccellaPh. His current research mainly focuses on industrial organization, collective bargaining, and in particular, the relations between product and labour perwwazji.

The choice of the bargaining agenda in a duopoly: The second group is composed of those that have helped in professional terms. No words exist to describe how he has helped me in my professional growth.

The interactions between product and labour markets are tight. Moreover, negotiation and bargaining are essential elements of several economic settings. Among them, the most significant ones are labour-management relationships and negotiations, which are central to the functioning of labour market institutions, mostly in advanced economies. The bargaining process is relevant not only for labour market regulations but also for the organisation of productive activities within the industries and the market of final products.

Indeed, in recent times, economists and policymakers as well as antitrust authorities have focused their attention on those links, considering in depth the role of unionised labour.

However, incorporation of unionised labour markets in the economic analysis of the interconnections between market competition and labour markets is relatively new and, therefore, the mechanisms through which imperfections in the labour markets counterbalance the imperfections in the product market are not yet fully clear.

The scope of bargaining refers to the issues included in the bargaining agenda, i. It is evident that the scope of bargaining as well as the wage setting structure are crucial to the determination of the wage outcomes at the firm level.

In practical perswaaji, the collective bargaining level refers to the level at which the most important issues, such as wages and working time, are negotiated between labour unions and firms. Several factors may help to explain this trend. Because of the influence of worldwide market developments, firms and magla may need to readapt immediately to changes in conditions of uncertainty.

The EU enlargement in direction pwrswazji Central and Eastern European Countries CEECs that have, in general, more decentralised, single-employer bargaining systems in contrast to the standard multi-employer bargaining in Western Europe, has further deepened the decentralisation trend within the EU.

Sectoral or national levels of wage agreements existed in some Eastern European countries in the mids.

However, afterthose agreements no longer played any significant part. Apart from the changes in Eastern Europe, no major variation in the dominant level of wage bargaining over time has been observed. Nonetheless, in the period —, the median value of the centralisation decreased slightly across EU Member States: Speaking more specifically, sincecentralised collective bargaining has prevailed only in Belgium and Finland, with the former increasing the level of centralisation in the very last years.


The financial and economic crisis that took place in — also undermined the centralised collective bargaining level in some countries.

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Similarly, inthe Slovenian social partners failed to renovate the cross-industry pacts that defined working conditions for those industries not covered by agreements. The shift towards multi-level bargaining structures that occurred in the recent past in several countries has further increased the potential for implementing decentralisation in different ways and to different extents.

In fact, many industrial relations systems in the EU, traditionally based on sectoral or cross-industry agreements, have gradually given more room for decentralised bargaining. Speaking in more detail, opening clauses have been permitted in Portugal sincewhen amendments to the labour code were brought in. Once-in-a-lifetime opening clauses were introduced for certain sectors of economy in response to the crisis in Germany, Austria, and Finland.

The legal framework in GreeceSpain and — for certain sectors — Ireland has been significantly modified, making it possible for companies to derogate from higher-level agreements.

However, because of the economic crisis, derogation has started to be commonly taken advantage of in some Perswazhi countries. For example, Germany in recent years has allowed for more flexibility at the company level as individual firms have been able to control and cut down on wage costs by restricting, for example, bonus and holiday payments.

Agreements made at the cross-sector level in Italy and France gave companies the opportunity of opting-out on the grounds of economic hardship in France, subject to the condition of no redundancies. Subsequent legislations have ratified and, in Italy, broadened these maga. The option to derogate from agreements has in many cases existed for some time already. However, the number of companies that take advantage of derogation has significantly increased in recent years because of the fact that since the crisis, more companies have faced economic hardship, which is the main justification for its use.

The trend towards decentralised bargaining at the company level in the EU seems to be reflected in the figures of the European Commission The average statistics perswazjk for Perswazni Member States show that industry bargaining is still the most common model in Europe, though subsiding after the — enlargements. Therefore, the variation in sector bargaining among Member States has increased.

This is so because of the difficulties to institute this kind of negotiations or to tangle the company-based bargaining, representing the norm mahia almost the entirety of the CEECs, into sector-based coordination arrangements in Western Europe.

The trends seem to diverge, however, after the mids across countries. The general trend towards lower bargaining levels from national to sector and from sector to company bargaining perswazjj partially counterbalanced by social pacts and framework agreements in several Member States, notably Spain, Slovenia, and Ireland together with Finland, Portugal, the Netherlands, and Greece, as Keune reports.

In some cases, these agreements introduced soft targets and rules, mxgia in other countries allowed for an increase in union concentration reducing the number of bargaining agents, thus adding to horizontal coordination.


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Where these countertendencies are absent, decentralisation appears to mxgia much more drastic, offering an explanation to the increased divergence. For example, New Zealand, Switzerland and, as just mentioned, Australia, have become countries in which bargaining is maggia relatively decentralised.

Based on the discussion above, the empirical evidence seems to be in support of an accentuated trend towards decentralised, company level negotiations in the majority of the advanced economies of the OECD countries. In this monograph, the analysis of the selection of the wage negotiation process in firm-union units follows the two most common theoretical bargaining models: In the RTM model, unions and firms bargain over wages; however, once the wages are fixed, the firm unilaterally retains the choice over employment levels.

On the other hand, in the EB model, firms and unions simultaneously bargain over wages and employment. To be useful, decision-making principles must be applicable to actual business behaviour and practices, such as wage negotiation. In each bargaining unit, the parties cooperatively negotiate the relevant bargaining variable to maximise the product of their payoffs. The structure of the monograph is as follows. In the second chapter, the two main theoretical bargaining models, i.

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The basic framework is subsequently extended to encompass different model specifications related to relevant aspects of contemporary economics.

As shown in the previous chapter, advanced economies offer excellent examples of empirical worldwide observed unions-firms bargaining phenomena. It has already been underlined that the scope of bargaining and the choice of the negotiation agenda are of crucial importance to labour-management relations and negotiations, where the presence of labour unions characterises the labour market institutions. Nonetheless, given that unions and managements mostly bargain over wages, the analysis of the selection of the wage negotiation process in firm-union units requires an introduction to the main theoretical bargaining models, already sketched in the first chapter: In the RTM model see e.

On the other hand, in the EB efficient contract model, firms and unions negotiate wages and employment simultaneously e.

However, despite its importance, the overall analysis carried out in this work moves away from this subject. Once the main union-firm bargaining models have been introduced, the analysis provided in this chapter moves in the direction of the core subject of this monograph: Network industries are among the fastest developing sectors of advanced modern economics.

Typical examples of network goods are telephone and software solutions: The large-scale expansion of mobile devices such as smartphones and tablets exemplify the increasing significance of these industries in our day-to-day life.

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