Introducing sectoral bargaining in the United Kingdom: Why it makes sense and how it might be done

Abstract

This study argues that sectoral bargaining offers a flexible alternative to legal regulation in setting terms and conditions of employment, encourages participation and involvement, brings benefits to employers and improves productivity and performance. It also provides a platform for sector and cross-sector social dialogue leading to improved policymaking and better macroeconomic outcomes. A statutory framework based on Wages Council-type arrangements and Advisory, Conciliation and Arbitration Service Codes of Practice is recommended for the United Kingdom, with sectors in the ‘foundational economy’ being prioritised. Sector agreements need to be about much more than pay, though, if they are to realise their potential.