Collective Dispute Resolution in the Public Sector: The Nordic Countries Compared

Abstract

Collective bargaining in the public sector in the Nordic countries is conducted both at the central and the local level. Dispute resolution at the central level aims at avoiding open conflict, and takes the form of mediation. In addition, a variety of self-imposed or legal regulations address who is entitled to take part in industrial action and how the bargaining structure is designed. Legal intervention plays a role in two countries, while the other two adhere to a principle of self-regulation. When it comes to the protection of essential services, legal intervention has tendencies towards overprotection while self-regulation has sparked most discussion in the direction of underprotection. Still, there are signs of convergence. Dispute resolution at the local level aims at concluding a wage disagreement, and usually takes the form of arbitration. The arbitration rate is low, two to five percent per bargaining unit per year. A decentralization of bargaining would only solve the problem of protecting essential services if all groups benefited from decentralization. Since this is not likely, decentralization is likely to either remain partial or trigger recentralization. The problem of protecting essential services will therefore remain at the core of public sector bargaining.