Minimum Wages, Collective. Bargaining and Economic. Development in Asia and. Europe. A Labour Perspective. Edited by

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1 Minimum Wages, Collective Bargaining and Economic Development in Asia and Europe A Labour Perspective Edited by Maarten van Klaveren Amsterdam Institute for Advanced Labour Studies, The Netherlands Denis Gregory Ruskin College Oxford, UK Thorsten Schulten Wirtschafts- und Sozial-wissenschaftliches Institut (WSI), Germany III macmillan

2 Contents List offigures and Tables Preface and Acknowledgements Notes on Contributors List of Abbreviations x xvi xix xxv 1 Asia: A Comparative Perspective 1 Maarten van Klaveren 1.1 Commonalities and differences Inequality and informality Minimum wages and collective bargaining 11 2 China 19 Yongjian Hu 2.1 Introduction The wage-setting mechanism Social security The development of wages Will demographic change and deepening globalization help to end cheap labour supply? Conclusions and recommendations 34 3 Vietnam 39 Dang QuangDieu and Hien Thi Thttong Dong 3.1 Economic development Population and labour force Role of the State concerning wage setting The role and functioning of trade unions The minimum wage The informal economy Collective labour agreements Recommendations and conclusions 55 4 Korea 59 Maarten van Klaveren and Tae-Hyun Kim 4.1 Introduction A history of export-led growth 60 v

3 vi Contents 4.3 Trade unions and collective bargaining Labour market and inequality The minimum wage Korea and the Great Recession Conclusions and recommendations 74 5 Japan 78 Hansjörg Herr 5.1 Introduction Macroeconomic development Wage institutions and the labour market Wage development and deflation Conclusion 97 6 Pakistan 101 KaramatAli, Zeenat Hisam and Sohail faved 6.1 Introduction The national context The labour market Labour legislation and policies Working conditions Wages and prices The minimum wage The trade unions Social security Conclusions and recommendations India 120 Biju Varkkey 7.1 Introduction The labour market Minimum wages The trade unions MGNREGA and minimum wages Conclusion and recommendations Indonesia 139 Surya Tjandra and Maarten van Klaveren 8.1 Introduction The labour market Wage-setting and social security institutions 142

4 Contents vii 8.4 Inequality and the minimum wage Economic development and outlook for trade unions Thailand 156 Sakdina Chatrakul Na Ayudhya 9.1 Introduction Historical background Institutions and employment The role of trade unions The minimum wage Recent changes and conflicts Conclusion Europe: A Comparative Perspective 173 Maarten van Klaveren and Thorsten Schulten 10.1 Commonalities and differences throughout the crisis Economic imbalances in Europe Inequality and growth perspectives A wage-led recovery? Contours of an alternative Programme France 188 Michel Husson, Estelle Sommeiller and Catherine Vincent 11.1 Introduction The minimum wage Collective bargaining and the minimum wage The minimum wage and wage inequalities Development of wages: The long-term dynamics Conclusion Italy 211 Salvo Leonardi and Riccardo Sanna 12.1 Introduction Labour market and economic developments The industrial relations system Development of wages and social security institutions Outlook and conclusion Germany 230 Thorsten Schulten and Reinhard Bispinck 13.1 Introduction Collective bargaining: Partial erosion 231

5 viii Contents 13.3 Collective bargaining: Decentralization and fragmentation Changes in power relations and the role of trade unions Wage developments Wages and economic development The future of wage policy The Netherlands 253 Maarten van Klaveren and Kea Tijdens 14.1 Introduction The labour market Collective bargaining and social security institutions Development of wages and social security The recovery: Export-led or wage-led? The Nordic Countries 273 Line Eidring and Kristin Alsos 15.1 Introduction Wage-setting institutions and minimum wage regulations The future of Nordic minimum-wage regulation Central and Eastern Europe 287 Bela Galgoczi 16.1 Introduction Main trends in wage developments The effects of austerity policy on wages Drivers of wage increases Wage setting and collective bargaining Conclusion The United Kingdom 307 Rupert Grifßn and Denis Gregory 17.1 Introduction Developments in the political economy Trade unions and collective bargaining The National Minimum Wage: A successful trade union campaign Pressures on the social security system 321

6 Contents ix 18 The Russian Federation 325 Elena Gerasimova and Anna Bolsheva 18.1 Introduction Labour market trends Trade unions, collective bargaining and labour disputes Wages and social security Conclusions and recommendations 340 Statistical Appendix: Comparative Statistics Index

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