6. Plaid Cymru Debate: Industrial relations

Part of the debate – in the Senedd at 4:05 pm on 1 March 2023.

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Photo of Heledd Fychan Heledd Fychan Plaid Cymru 4:05, 1 March 2023

We've already heard about the correlation between high levels of union density and positive outcomes in terms of high wages and productivity, and this is corroborated by numerous international examples—Mabon and Delyth have already beaten me to it on this. But, consider Sweden, where 88 per cent of employees are covered by collective bargaining rights, and it has an adjusted net national income per capita of $44,552, compared to the UK's $36,000. It is also ranked seventh out of the 146 countries in the world happiness index, and scores highly on global equality metrics. The key to Sweden's successful model of labour relations has been its implementation of collective bargaining on a sector or industry level. This ensures high rates of collective bargaining coverage, particularly across the private sector, which stands in direct contrast to the company or employer level at which UK agreements usually take place, which invariably lead to low rates of collective bargaining coverage and stark discrepancies between the public and private sectors.

Similar models are in place in the fellow Nordic countries of Iceland, Denmark, Finland and Norway, all of which have the highest rates of union density in the world and are amongst the world's wealthiest, most equal and happiest of nations. Collective agreements cover 98 per cent of French workers, who enjoy 10 per cent higher disposable incomes compared to the average UK worker, and a shorter working week. As such, sectoral bargaining is a model that other nations are seeking to emulate, and with good reason. For example, New Zealand recently passed its Fair Pay Agreements Act 2022, which facilitates collective bargaining for fair pay agreements across entire industries or occupations. This at a time when the UK Government want to oppress trade unions.