13 From Bilateral Monopoly to Industry-based Bargaining causes and consequences (Feb 14)

13 From Bilateral Monopoly to Industry-based Bargaining causes and consequences (Feb 14)

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FROM BILATERAL MONOPOLY TO INDUSTRY-BY-INDUSTRY WAGE DETERMINATION Conditions sustaining “CE” model: (1) Bilateral monopoly in wage determination; (2) Gov’t willing to enforce “contract”; (3) Stable eco conditions expected in future 1970S: Energy shocks, stagflation 1.Bilateral monopoly weakens from “outside” a.growth of gov’t i. taxes ii. public sector employment iii. competition between TCO, LO 2 separate systems of wage determination: public v. private
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2. Bilateral monopoly weakens from inside i. “Co-determination” by legislation ii. Division within LO iii. SAF: Labor “taking with two hands” 3. Political change (“neutral enforcement” problematic) i. turnover in gov’t after 1976 ii. strike activity up; SAF lockout fails iii. Fear of Meidner plan iv. Start of separate agreements in private
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Unformatted text preview: sector; 1990s: SAF disbands collective bargaining apparatus, shift to industy-by-industry 4.Economic uncertainty i. Rise of cost of living leads to inflationary wage contracts ii. 1986: Single European Act; Sweden fears trade diversion effects; decides to join EU Political implications:--liberalize capital markets--constraint on devaluations Deregulation of other markets (housing)--Serious unemployment for first time; “crisis” leads to some reforms, when “normality” returns, have industry-level bargaining in private sector, TCO taking lead from export sector; some rationalization of welfare via delegation to local gov’ts; --hi union density, industrywide bgng, welfare state reforms, retrenchment...
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This note was uploaded on 04/18/2011 for the course POLI 126AA taught by Professor Ellencomisso during the Spring '11 term at UCSD.

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13 From Bilateral Monopoly to Industry-based Bargaining causes and consequences (Feb 14)

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