In general, the decentralization of wage negotiations – like other collective agreement issues – has increased significantly over the past two decades. However, without reducing borrowing at the central level of the sector. The evolution of this relationship is called “centralized decentralization.” Therefore, the room for manoeuvre for locally agreed wage flexibility is considerable. The Sickness Benefits Act (Consolidation Act No. 871 of 28 June 2013 – Sygedagpengeloven) concerns those who are not covered by the collective agreement, including self-employed persons. The employer pays for the first 30 days of leave, and then the municipality assumes responsibility for the sickness benefit under the law. Asked about the prospect of future collective agreements with digital platforms, Holmboe-Hay said: “It is very difficult to reach a union agreement in which all digital platforms fit in. For each platform, things have to be negotiated. It`s a real challenge. Collective bargaining in Denmark is part of a clearly defined structure. At the highest level, there are framework agreements between the lo and the Danish employers` organisation (DA) which lay down the rules applicable to matters which would be regulated by law in many other countries.
The most important agreement at this level is the general agreement which covers the right of association, the right to dismissal and labour disputes. The Cooperation Agreement (see below) was also signed at this level, which has been revised several times since its entry into force in 1947. Two variable remuneration schemes coexist within the banking sector and are governed to varying degrees by the sectoral agreement between the Danish Association of Financial Sector Employers (FA) and the Financial Services Union (Finansforbundet, FF), which are the only two social partners in the banking sector. The oldest system used by retail banks is the standard payment system, governed by the sectoral agreement between the two organizations within the banking sector. This system is used by 149 of the 163 members of the FA and covers about 40% of the staff of the banking system. In 1997, the inter-trade agreement also introduced an alternative remuneration system based on supplementary wages. This system of additional remuneration is based on local agreements. In 2008, 14 banks, mostly larger, used this system and about 60% of all employees in the banking sector were covered by this system (FA; 16-9 in 2003).
Both systems can coexist within a given company. However, to the extent that the company has not set up local institutions for the wage system on the basis of additional wages, the company must comply with the rules of the standard remuneration system (collective agreement, Finansforbundet and FA, 2008 § X). He continues: “We have a lot of contact with the big digital platforms and we are gaining experience on the challenges before we start demanding trade union agreements on all digital platforms.” In Denmark, wages and working conditions are generally set out in collective agreements agreed by trade unions and employers` organisations. This means that the state does not play an active role in setting wages and working conditions in Denmark. Therefore, you will not find a minimum wage defined by law. Wages and working conditions are set in each sector. It is up to the foreign company to refer a dispute to the Danish Labour Court to determine whether claims for a collective agreement are legal and whether a strike or blockade is legal. The Danish Labour Court will rule quickly on such matters.
In Denmark, the main purpose of denouncing an expiring agreement is to negotiate a new agreement. .