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Working Life Barometer in the Baltic Countries 2002 (pdf) - mol.fi

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121<br />

DIFFERENCE IN MEDIAN SALARIES BETWEEN WORKERS AT<br />

WORKPLACES THAT HAVE MADE A COLLECTIVE AGREEMENT<br />

AND OTHER WAGE EARNERS IN <strong>2002</strong>, BY DECILES (%)<br />

DIFFERENCE BETWEEN WORKPLACES WITH A COLLECTIVE<br />

AGREEMENT AND OTHER WORKPLACES (% units)<br />

ESTONIA +10.7 +16.7 +9.2 +6.6 +14.3 +12.5 +3.7 0.0 -8.3<br />

LATVIA +12.0 +16.4 +28.2 +22.3 +21.3 +21.3 +13.2 +1.9 -5.7<br />

LITHUANIA +1.7 +7.0 +16.3 +17.8 +14.3 +12.6 +5.8 +5.1 -6.7<br />

DECILES 10 20 30 40 50 60 70 80 90<br />

Taken as a whole, <strong>the</strong> results <strong>in</strong>dicate a relation between salary payment and<br />

<strong>the</strong> method of agreement. However, it is dif<strong>fi</strong>cult to say for sure whe<strong>the</strong>r trade<br />

union membership <strong>in</strong>fluences salary size or whe<strong>the</strong>r better-paid workers than<br />

before have jo<strong>in</strong>ed trade unions <strong>in</strong> <strong>2002</strong>. A scrut<strong>in</strong>y of <strong>the</strong> salary deciles shows<br />

that at workplaces which have made a collective agreement, <strong>the</strong> lowest salaries<br />

- and especially <strong>the</strong> salaries of those with middle <strong>in</strong>comes - are higher than <strong>the</strong><br />

average.<br />

In Estonia, Latvia and also Lithuania, <strong>the</strong> majority of <strong>the</strong> salaries are agreed on<br />

<strong>in</strong>dividually. The rate of unionisation is quite low, and both unionisation and<br />

collective agreements are def<strong>in</strong>itely more frequent <strong>in</strong> <strong>the</strong> public sector (see <strong>the</strong><br />

chapter on Unionisation and Barga<strong>in</strong><strong>in</strong>g.) From <strong>the</strong> standpo<strong>in</strong>t of <strong>the</strong> wage<br />

earners <strong>in</strong> total, it is thus clear that <strong>the</strong> signi<strong>fi</strong>cance of trade union membership<br />

as described above is still relatively small. It can, however, be reckoned that <strong>in</strong><br />

<strong>the</strong> public sector, <strong>the</strong> connection between unionisation and salary size has importance<br />

also for <strong>the</strong> wage earners as a whole. In <strong>the</strong> private sector, however,<br />

<strong>the</strong> signi<strong>fi</strong>cance rema<strong>in</strong>s very small. The results also <strong>in</strong>dicate that where pay is<br />

concerned, <strong>the</strong> mak<strong>in</strong>g of collective agreements is def<strong>in</strong>itely a more important<br />

factor than whe<strong>the</strong>r or not <strong>the</strong> workers at <strong>the</strong> workplace belong to a trade union.<br />

These two aspects are of course connected with each o<strong>the</strong>r, but mere union<br />

membership does not automatically change <strong>the</strong> procedures by which salaries<br />

are agreed on.

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