In practice, however, trade unions may be concerned not only about wages, but also about employment and macroeconomic resilience. This motivated the “effective negotiation” model (McDonald and Solow, 1981) 1. In addition, wage dispersion is greater in systems without collective bargaining or in systems where companies set wages independently. On the other hand, wage dispersion is, on average, the lowest for employment-related employees. Centralized trading systems tend to reduce productivity growth when agreement coverage is high. This result indicates that the lack of flexibility at the enterprise level, which characterizes centralized trading systems, could come at the expense of less productivity growth. On the other hand, greater coordination in non-centralized systems does not have a negative effect on productivity.  Haipeter, T. and S. Lehndorff (2014), “Decentralization of collective bargaining in Germany: Fragmentation, coordination and revitalization,” Economia – Lavoro, Vol.
The level of collective bargaining: at the enterprise level, or even at the national level. Multi-stage negotiations involve a combination of collective bargaining at the enterprise level and higher collective bargaining. In Slovakia, a tradition of collective bargaining has already been established at the level of branches, branches and companies. Collective bargaining now benefits from the experience gained so far by the social partners involved in the process of social dialogue. Over the past five years, many effective working contacts have been established between representatives of Slovak employers and trade unions and their experts and partners abroad, particularly in EU Member States and within the International Labour Organization. These working contacts have contributed significantly to the evolution of collective bargaining at various levels. In practice, there are few “pure” agreements, because even standard agreements may contain some common standards. The classification of countries in 2015 was extended backwards until 1980 using information in the Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts (ICTWSS) database14. It largely reflects the strong trend towards decentralized collective bargaining, but it also covers many changes in country-by-country tariff practices. These variations over time are used in the analysis to estimate the relationship between collective bargaining systems and labour market performance indicators.
The above analysis has shown that collective bargaining tends to result in lower wage dispersion.