45126-Invest. Qual-No111

Wage Bargaining(1988) curve, combining the advantages of centralisation anddecentralisation. But for this beneficial outcome to occur it isessential that “the different levels are integrated so as to preventthem from mutually blocking their respective purpose” (Traxler1994: 174).A characteristic of local bargaining in the Nordic countries is that,with a central agreement in force, it takes place under a peaceobligation. A similar condition applies to local bargaining inGermany, Austria, Switzerland, the Netherlands and Belgium.Collective agreements in these countries create rights and obligationsboth for the signing organisations and for their members.Whether strikes nonetheless occur, depends on the effectiveness ofmediation procedures, inter-union rivalry and the tolerance of theunions for (short) strikes. Finland was long the ‘Nordic exception’to peaceful industrial relations because of the political fragmentationof the union movement (Lilja, 1992). Norway appears leasttolerant to strikes and is one of the few industrialised countries withcompulsory conflict mediation (which is, under the rules of the ILO,only allowed in ‘essential services’). More important, probably, as amethod to restrain maverick unions and employers, is thepossibility, as exists in Denmark, of ending industrial conflicts by asingle mediation procedure for the entire private (or public) sector,empowering the mediator to treat several settlements as one entityin the ballot (Elvander, 2000). Votes among union members oversuch proposals are typically aggregated across firms and sectors.This is a strong centralising element in an otherwise decentralisedsystem of wage setting like for instance the Danish one.In Table 6.1 we observe, however, that more working days are lostdue to industrial conflicts in the Nordic countries and in SouthernEurope than in Germany, Austria, Switzerland, and the Beneluxcountries. The reason may be that supplementary local bargaining inthe latter countries is recent, less widespread and more subdued.Trade unions tend to defend their prerogative in wage negotiationsagainst the mandatory works councils. Not having their ownrepresentative bodies in the workplace (with the exception ofBelgium), unions in these countries must rely on works council239