Estonia: collective agreements have a hard time proving they are efficient

After two studies written in 2010 and X-raying the country's social relations, the Estonian Minister of Social Affairs presented, on June 11, 2012, a new, shorter study entitled "The Role of Collective Agreements in Estonian Industrial Relations" ("Kollektiivlepingute roll Eesti töösuhetes") carried out within the framework of the European Social Fund's program, "Improving the Quality of Life at Work 2009-2014." This study gives an overview of how the social partners envision their role in future industrial relations, which factors encourage or limit collective agreements, their pros and their cons. The point is that collective agreements are having a hard time proving to employers and employees that they are effective. (Ref. 120465)
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Scarce collective agreements mirroring social relations. When reading the study, Estonia doesn’t seem like the land for social bargaining. Compared with other European countries, collective bargaining is hardly seen as a way to regulate labor relations. Only 6 percent of businesses with 5+ employees have collective agreements and they are mostly businesses with 250+ employees, public companies or even non-profit organizations and foundations. Besides, for the last 10 years, it seems that th

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