Collective Bargaining Coverage under Trade Unionism: A Sociological Investigation

Does high union density lead to high collective bargaining coverage? Since collective bargaining is seen as the raison d'être of trade unions, this is often assumed to be the case; some observers think that union density is ‘a floor’ below which collective bargaining coverage is unlikely to fall. With its very high union density, Denmark is a case in point. This article investigates the collective bargaining coverage issue in the Danish case, based on an individual-level employee survey with 1720 respondents. Collective bargaining coverage is shown to be much lower than union density, and some methodological issues in this connection are considered. In order to find some possible explanations for this surprising finding, the question of variance of collective bargaining coverage between groups of employees is discussed in the light of theories of service society and recent research results and theories. The impact of central variables is investigated through multivariate analysis, and it turns out that by far the most important variable predicting an employee's collective bargaining coverage is a variable mostly neglected in comparative analyses: occupational status. Salaried employees have a much lower collective bargaining coverage than manual workers in Denmark, and some possible reasons for this are given.     

Social Risk Management: A New Conceptual Framework for Social Protection, and Beyond

This paper proposes a new definition and conceptual framework for Social Protection grounded in Social Risk Management. The concept repositions the traditional areas of Social Protection (labor market intervention, social insurance and social safety nets) in a framework that includes three strategies to deal with risk (prevention, mitigation and coping), three levels of formality of risk management (informal, market-based, public) and many actors (individuals, households, communities, NGOs, governments at various levels and international organizations) against the background of asymmetric information and different types of risk. This expanded view of Social Protection emphasizes the double role of risk management instruments—protecting basic livelihood as well as promoting risk taking. It focuses specifically on the poor since they are the most vulnerable to risk and typically lack appropriate risk management instruments, which constrains them from engaging in riskier but also higher return activities and hence gradually moving out of chronic poverty.     

Phases and dynamics in the development of EU industrial relations regulation

In this article the authors discuss whether it is possible to identify the existence of a European IR-system. They try to identify important phases and dynamics in the emergence of what is termed the European IR-model. It is argued that traditional IR-theory should be combined with theories which allow more extensive consideration of politological and institutional phenomena when analysing IR developments at pan-European level.     

Self-reinforcing Agglomerations? An Empirical Industry Study

We test for the existence of endogenous agglomeration forces, using structural econometric models. After showing generally how to establish the existence of agglomeration forces empirically, we undertake an industry study of the maritime industry in Norway. The results suggest that there are significant economies of scale in the maritime industry. These economies of scale are mainly found in sub-groups of a set of nine maritime industries. This indicates that the maritime industry consists of two self-reinforcing agglomerations, but that there are few mechanisms actually keeping the two together.
JEL classification: C 33; D 24; O 47; R 11; R 12     

Free riders: the rise of alternative unionism in Denmark

In this article we analyse some disturbing trends in the Danish labour market: while collective bargaining coverage is still relatively high, union density has been declining and—worse than that—there has been a substantial shift away from recognised and in favour of alternative unionism. The alternative unions are not parties to collective agreements, and they offer membership much cheaper than the recognised unions, in effect taking a free ride on the institutional supports that used to be effective only for the recognised unions. The article explains this conundrum by pointing to the political and institutional backgrounds to this development, which threatens to erode the very basis for the Danish collective bargaining system. On the background of general statistics and of a general employee survey, we point out the reasons behind the challenges confronting the recognised unions, pointing out that the recognised unions must become both more efficient in the member services and more cost efficient, if they wish to halt the present downhill trend.     

A Union-bashing Model of Inflation Targeting

This paper shows that in an open two‐sector economy, centralization of wage setting may be important in determining the employment (and welfare) effects of different monetary targets. By disciplining unions in the sectors open to international trade, exchange rate targeting yields higher employment than inflation targeting when wage‐setting is more centralized in the open sector than in the shielded sector. When wage‐setting centralization is higher in the shielded sector, we show that general price‐level inflation targeting, while better than exchange rate targeting, is inferior to an inflation target that focuses more heavily on shielded sector prices.     

The Growth of Private Regulation of Labor Standards in Global Supply Chains: Mission Impossible for Western Small- and Medium-Sized Firms?

Multinational corporations (MNCs) have come under pressure to adopt private regulatory initiatives such as supplier codes of conduct in order to address poor working conditions in global supply chain factories. While a well-known literature explores drivers and outcomes of such monitoring schemes, this literature focuses mainly on large firms and has ignored the growing integration of small- and medium-sized enterprises (SMEs) into global supply chains. Furthermore, the literature on corporate social responsibility (CSR) in SMEs primarily emphasizes domestic initiatives and not global challenges. Focusing on the Business for Social Compliance Initiative (BSCI), this article examines the positions of private actors, who demand and supply private regulation as well as the positions of those firms, who are the targets of such schemes. As the BSCI has grown its membership, MNCs increasingly request that SMEs meet BSCI requirements in global supply chains even though compliance is a “mission impossible” for many smaller firms. As a result of this development, the private regulatory system is facing growing strain.     

Institutional Change and the Problems of Restructuring the Russian Fishing Industry

This article discusses how the transition from a planned towards a market-based economy has affected the Russian fishing industry. It is based on a series of studies of the Northwest Russian fishing industry, where evidence from its past role and functioning is contrasted with the current situation. The conceptual perspective drawn on is institutional theory, with a focus on higher-order institutions. One of the main findings is that the fishing companies stand out as the only surviving party in the game. The losers are the land-based fish processing industry, the mother ship and transport fleet, and the support structures, which depend on the activities generated by the prime production (fishing). It is argued that the new institutional arrangements necessarily force a new adaptation among the fishing companies, and suggested that some of the changes of the higher-order institutions have been less successful than initially assumed, as there still are several adverse elements in the Russian institutional arrangements that hinder further transition toward a marketbased economy.     

Exploring Accounting and Democratic Governance: A Study Comparing a Norwegian and a Russian County

Interpretations and explanations of experience that make consequences interpretable and actions imaginable are said to be given by accounts. Formal accounting systems used in economic, social and political institutions are seen as portraying their political realities. The purpose of this study is to explore connections and tensions between the realities portrayed in the accounting systems and the governance structures of local governments in two counties, one in Norway and one in Russia. The formal accounting and governmental systems of these two counties are described, analyzed and compared using accounting and democratic governance perspectives. The article ends with a discussion of interrelationships and tensions between accounting and democratic governance. Through comparing the democratic governing structures of these two counties with the accounting systems employed, three main conclusions are presented. Firstly, it is shown that principal–agent relations influence accounting procedures that symbolize democratic governance. Secondly, the accounting language applied does not portray local politicians. Thirdly, accounting norms do not reflect democracy and democratic governance. In summary, the study shows that even very formalized accounting offers flexibility by way of giving meaning to processes and structures in organizations characterized by strictly formalized structures.     

Willingness to Pay versus Expected Consumption Value in Vickrey Auctions for New Experience Goods

Over the past two decades, Vickrey auctions have been widely used to elicit willingness to pay for new food products. This article shows that in a multiperiod context, it can be optimal for consumers to bid higher than the expected consumption value for a new experience good to obtain information about how the new good fits into their preference set. The degree of uncertainty about the consumption value, the purchasing frequency, and expected future market prices affect both the expected value of the quality information and the subgame perfect bidding strategy in Vickrey auctions for new experience goods.