Sectoral collective bargaining


Sectoral collective bargaining is an aim of trade unions to reach a collective agreement that covers all workers in a sector of the economy. It contrasts to enterprise bargaining where agreements cover individual firms. Generally countries with sectoral collective bargaining have higher rates of union organisation and better coverage of collective agreements than countries with enterprise bargaining. Research by the OECD, ILO and the European Commission has also linked sectoral bargaining to higher real wages, lower unemployment, fewer strikes and greater wage equality.

European Union

In the EU, countries that have sectoral collective bargaining have significantly higher rates of coverage than those with enterprise or individual workplace bargaining. Under the Adequate Wage Directive 2022 article 4, a member state with collective bargaining coverage under 80% will be required to make an "action plan" to achieve 80% coverage.
CountryCoverage in 2015System
France98%Sector
Belgium96%Sector
Austria95%Sector
Finland91%Sector
Portugal89%Sector
Sweden89%Sector
Netherlands84%Sector
Denmark80%Sector
Italy80%Sector
Norway73%Sector
Spain69%Sector
Slovenia65%Sector
Croatia61%Sector
Malta61%Enterprise
Luxembourg59%Sector and enterprise
Germany59%Sector and enterprise
Ireland44%Enterprise
Czech Republic38%Enterprise
Romania36%Enterprise
Slovakia35%Enterprise
Latvia34%Enterprise
Estonia33%Enterprise
Hungary31%Enterprise
Bulgaria29%Enterprise
United Kingdom29%Enterprise
Poland18%Enterprise
Greece10%Enterprise
Lithuaniano data%Enterprise, some sector

In 2019, the OECD's estimates for the percentage of collective bargaining coverage was somewhat changed. Collective bargaining coverage has generally fallen across EU member states, and most substantially in Greece, Romania, Slovakia, Germany and Slovenia, though policies to raise coverage have been implemented including better employer organisation, tying public procurement to collective agreements—as in half of German states by 2021—and encouraging more union members.
The action plans of member states were mostly submitted in December 2025, according to the Directive, and made available by the ETUC, however Spain, Germany, Bulgaria and Hungary's plans were missing.

United Kingdom

While sectoral bargaining used to be standard in the UK, enterprise bargaining was advocated by the 1968 report of the Royal Commission on Trade Unions and Employers' Associations chaired by Lord Donovan.

United States

Sectoral bargaining was promoted by the National Industrial Recovery Act of 1933, but struck down and replaced by enterprise bargaining under the National Labor Relations Act of 1935. Today industries like screenwriting, hotels, and railroads still see sectoral bargaining predominate.