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Collective Bargaining

Union rights, collective wage agreements, and social dialogue on pay equity

Why This Matters

Collective bargaining provides workers with collective power to negotiate fair wages and challenge pay inequities. Union involvement in pay-setting processes brings worker perspectives into compensation decisions, increases transparency, and creates accountability mechanisms. Countries with strong collective bargaining frameworks typically have lower wage inequality and smaller gender pay gaps. Social dialogue between employers and worker representatives helps identify and address structural pay issues that individual employees may lack power to challenge. Unionized workplaces show 10-20% smaller gender pay gaps on average.

How It's Measured

Compliance involves ensuring worker representatives or unions are consulted on pay equity matters as required by law or collective agreements. This includes reviewing whether unions have access to necessary pay data, assessing whether collective bargaining agreements include pay equity provisions, verifying that required consultations occur before implementing pay systems or reporting, and documenting joint assessment processes. Metrics include frequency of consultations, union access to disaggregated pay data, and incorporation of pay equity commitments in collective agreements.

How to Comply & Mitigate Risk

Organizations operating in jurisdictions with collective bargaining requirements should: establish formal consultation processes with recognized unions or worker representatives, provide timely access to pay data needed for meaningful dialogue, include pay equity provisions in collective bargaining agreements, create joint labor-management committees for pay assessment, document consultation processes and outcomes, respect union rights to review and challenge pay decisions, and incorporate worker feedback into pay equity action plans. Even where not required, proactive social dialogue can improve pay equity outcomes and employee relations.

Common Requirements

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Union consultation requirements

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Collective bargaining agreements

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Enacted

Europe

Key Laws:

• Equality and Anti-Discrimination Act
• Working Environment Act

Covers 3 topics

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