The Efficacy of Hybrid Collective Bargaining Systems: An Analysis of the Impact of Collective Bargaining on Company Performance in Europe

Individual and company bargaining has increasingly supplanted sector and country collective bargaining leading to increasingly perforated and multi-layered national collective bargaining systems. In this paper, we develop a comprehensive categorization of bargaining and argue that both the bargaining level and the degree of integrative interaction between bargaining units matters for efficacy. This idea is tested using representative company level data for the European Union. We find that the efficacy of coordinated sector and multi-level systems is higher than for all other forms of bargaining. Policy implications are discussed as these results challenge current attempts to reform collective bargaining in Europe.