BARWAGE Report 2: Wages in collective bargaining agreements in 10 European countries: provisions on minimum wages and pay scales

This report presents an in-depth analysis of wage and pay scale provisions contained in collective bargaining agreements from 10 selected European countries. Utilizing the rich WageIndicator Collective Bargaining Agreement (CBA) Database, the report comprehensively examines negotiated wage rates, pay scales, compensation premiums, wage raises, and other non-wage provisions codified in labor contracts. The analyses systematically explore variations and similarities in collectively bargained wage structures across countries, industries, and levels of bargaining. A central descriptive examination maps the levels at which base wages are determined in CBAs - from national agreements down to company-level and individual contracts. Detailed summary statistics illuminate the prevalence of different wage-setting arrangements in each country and across major industries (according to a suggested aggregation). The report further segments these findings by the level of collective bargaining, shedding light on how wage determination approaches differ between sector-level, firm-level, and other negotiating structures. Beyond base pay, the study provides complementary assessments of collectively bargained compensation premiums, allowances, and other wage elements specified in labor agreements. It quantifies the frequency with which CBAs incorporate provisions for seniority pay, overtime pay, shift differentials, bonuses, and other wage supplements. Negotiated frameworks for pay increases are also examined across the database. The analysis reveals considerable heterogeneity in collectively bargained wage outcomes when viewed through national and industry lenses. However, synthesizing results across the 10 European countries shows limited significant differences in CBAs’ structure patterns when segmented solely by the level of collective bargaining. The findings suggest bargaining level is not a primary driver of variation in negotiated wage and pay scale provisions across the sampled agreements.

This report provides an exploratory empirical insight into the complex landscape of wages and compensation codified in collective labor contracts across Europe. The mapping of wage determination processes, pay supplements, and scheduled raises specified in CBAs holds substantial value for researchers, policymakers, negotiators, and other stakeholders engaged with issues of employment standards, remuneration, and industrial relations.

BARWAGE is a project within the Social Dialogue Program of the European Commission. (SOCPL-2021-IND-REL - Project ID 101052319)