Variable Pay Systems and/or Collective Wage Bargaining? Complements or Substitutes?. (March 2021)

• Record Type: Journal Article
• Authors: Bechter, Barbara; Braakmann, Nils; Brandl, Bernd
• Is Part Of: Industrial and labor relations review. Volume 74:Number 2(2021)
• Page Start: 443
• Page End: 469
• Publication Date: 2021-03
• Subjects: collective bargaining -- performance pay -- European Union -- comparative industrial relations -- employment relations; Industrial relations -- Periodicals; 331.05
• DOI: 10.1177/0019793919883882
• Languages: English
• ISSNs: 0019-7939

Abstract

Whether collective wage bargaining impedes the implementation of variable pay systems is uncertain. The authors argue that much of this uncertainty is attributable to the fact that research neglects differences in the institutional structure of bargaining. Using representative company-level data for all member states of the European Union, the authors investigate the incidence of variable pay systems in general as well as pay types that include payment-by-results, performance-related pay, and team-related pay under various bargaining arrangements. Findings show that the institutional structure of collective bargaining matters: Variable pay systems thrive under company and multilevel collective bargaining, whereas their implementation is limited under national-level collective wage bargaining.