Testing The Danish Model – a Case Study of the CSC-conflict

Abstract

Although the number of conflicts in the Danish labour market is low, we now see more examples of workplace conflicts concerning pay reductions. One significant example is the re-negotiation of two company agreements between CSC, a USowned IT-company, and PROSA, the union for IT-professionals in Denmark, which led to a large conflict in spring 2011. Drawing on documentary analysis and 10 interviews with employer- and employee representatives involved in the conflict, this paper investigates the causes and consequences of the conflict. Theoretically the paper is based on the work by Due & Madsen (1993; 2006), which defines and discusses the concept of The Danish Model. The analysis demonstrates that the negotiations and agreements between CSC and PROSA deviate from the Danish tradition of consensusoriented bargaining relations due to large disparities in bargaining power. Furthermore, the negotiations deviate from a core characteristic of the model – the central coordination of negotiations. The company agreements between CSC and PROSA are negotiated at local level only, the date for renewal of the agreements is asymmetric to most other agreements in the private sector, and the internal coordination of bargaining objectives at PROSA is heavily decentralised. This makes it difficult for the bargaining representatives at PROSA to reach an agreement and to convince their members of voting yes to a compromise. Nevertheless, the conflict also reflects some general challenges for Danish labour market regulation in the coming years. Increasing competition changes the bargaining power not only among low-skilled but also among high-skilled workers. This forms a challenge for unions representing highskilled workers like IT-professionals, as they need to adjust the expectations on pay and other working conditions among members, who might still consider their bargaining position to be strong.