Common Contracts

Denmark: the sacred cow of collective bargaining is still alive

May 15th, 2019

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  May 15th, 2019

The main principles of collective bargaining in Denmark were established in 1899 with the so-called ‘September compromise’ (Septemberforliget). This general agreement, which is sometimes also called the ‘constitution of the labour market’, is still in force. It confers a prerogative on employers and legitimacy on the trade unions to represent the workers’ interests. It also laid the foundation for the voluntarism that still is the main principle of labour market regulation in Denmark. The key issues and basic relations between capital and labour are not regulated by the state but by the two sides in the labour market. The line of demarcation between state regulation and collective bargaining, however, is and always has been contested as regards other issues than pay and working time.