Collective Bargaining in the Nordic Countries: Will the Employers Still Dance?

Collective bargaining (CB) is under pressure in Europe. Even in the Nordic stronghold of CB, the impact of crisis, structural change, union decline, low-wage competition, clashes with the EU, and changing political winds has cast doubts about the stability of CB (Andersen, Dølvik & Ibsen 2014). This paper analyses recent developments in Nordic CB with emphasis on the role of employers in upholding the capacity for coordination. Conventional accounts highlight the significance of strong unions for the evolution of Nordic CB. Some scholars stress the importance of employer associations (Due et al. 1993; Swenson 1991), whereas others emphasize the key roles of cross-class coalitions in export manufacturing in developing coordination (Moene et al 2003; Thelen 2014). Tracing and comparing Nordic trends, this paper aims to discuss how recent working life developments have affected main employer groups’ interests and strategies regarding collective bargaining. With fiercer international cost competition, weakened unions, and new opportunities to save on costs and enhance flexibility by hiring external labour, the exit options have increased and collective action problems are likely to amplify on the employer side. In divergent economic, political, and organizational contexts, this may well lead Nordic employers to choose different strategies to pursue their interests. Based on qualitative interviews, process tracing, and updated statistics, the aim of the paper is thus to compare and discuss how Nordic employer associations are perceiving the prospects for, and development of, CB in the years to come.