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Changes to Wage-Setting Mechanisms in the Context of the Crisis and the EU's New Economic Governance Regime

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This report explores the impact of the crisis on wage-setting mechanisms in the 28 EU Member States plus Norway. It also examines the impact of the EU’s new economic governance regime – specifically the requirements of the country-specific recommendations and Memoranda of Understanding – on wage-setting mechanisms. It looks at changes in wage bargaining levels, the extent of horizontal coordination across bargaining units, links between the different levels involved in wage-setting, minimum wage-setting and indexation mechanisms, and the volume and duration of collective wage agreements. The report examines the factors influencing changes, chiefly economic and political ones, and addresses the role of different institutional actors in initiating and implementing changes, including the social partners, national governments and the European and international institutions. Overall, the extent and consequences of change in wage-setting has been greatest among the countries receiving financial assistance packages from the troika of European and international institutions.

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2014-01-01

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wage-setting mechanisms; collective wage agreements; Europe

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