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In the long run model presented here, Holmlund's result for bargained profit shares continue to hold (as does Layard and Nickell's for bargained employment), though for different reasons.
This is true whether wages w and [Lambda], are both bargained over or [Lambda] is mandated and wages are bargained over.
First consider the case in which [Lambda] is mandated and only the wage is bargained over.
Now consider the case in which wages w and the profit share rate [Lambda] are bargained over, after which the firm sets employment.
Although in both countries the large export-oriented employers prevailed within their respective organizations, the outcome was different in the two cases because the winners wanted different things: in Sweden the dismantling of traditional bargaining institutions and radical decentralization, in Germany continued industry-level negotiation and bargained flexibility.
The peak trade union confederation in Germany, the Deutscher Gewerkschaftsbund (DGB), has never bargained for its affiliates in the way that the LO did.
A major difference between the German and Swedish systems lay in the way each dealt with locally bargained wage drift.
(28) Mollemann proposed legislation that would allow works councils and managers in the East to negotiate plant-level deviations from the collectively bargained industry agreements.
Where it can be used, the collectively bargained VEBA is especially valuable because it allows tax-deductible contributions, tax-free asset accumulation, and the ability to fund the entire retiree medical liability, including the medical inflation component.
You can see this in the difference between funding for management employees under a 501 (c) (9) trust and the more tax-advantaged funding vehicles for collectively bargained employees.
The decision was to transfer excess pension assets and to pre-fund using a collectively bargained
In the initial draft of Bill 8, government was to be the sole party negotiating with the ATA on matters that should be bargained centrally versus locally, during the first round of bargaining, scheduled to begin in 2016.