The Danish Labour Market

Key facts about the Danish labour market

Denmark has a long-standing tradition* of high unioni- sation and strong workers’ organisations (trade unions) and employers’ organisations. They are commonly known as the ‘social partners’.

Collective bargaining

The social partners negotiate sectoral collective agreements that define labour market regulation. Workers and employers negotiate local agreements at company level.

Conflict resolution

When a company is covered by one or more collective agreements, it is the job of the shop steward – who is elected by the workers and a member of the trade union and acts as a local union repre- sentative in that capacity – to ensure effective implementation – an element unique to the Danish model.

Flexicurity

The Danish labour market combines a robust system of social security with a proactive labour-market policy and flexible regulation based on collective agreements between the social partners.