Wage bargaining key to surviving crisis

WAGE bargaining at national level has improved the gender pay gap, wage inequality and in-work poverty, an EU report has concluded.

It warns that high quality industrial relations are key to surviving the economic crisis and restarting EU states’ economic growth.

The Industrial Relations in Europe report shows that a 10% increase in those involved in collective bargaining reduces in-work poverty by 0.5%.

Trade union membership results in less wage inequality between workers and the report put this at a reduction of wage inequality of around 2% for every 10% increase in trade union membership.

There was a similar correlation for the gender pay gap where the higher the trade union membership the lower the gap.

In Ireland women are paid on average just under 80% of men’s pay, eleventh in the EU in both the gap and union membership.

Employment and Social Affairs commissioner Vladimir Spidla said the EU’s recovery plan could not be delivered without involving social partners.

“Working conditions, training or active labour market policies cannot be the sole responsibility of the state, nor be left entirely to market forces.”