Abstract
Since the 1980's, industrial relations in advanced countries have moved toward decentralization and individualization. In this article, I examine important changes in the wage determination of individual workers under these conditions through the perspective of Dunlop's substantive rules. The main findings in this article are as follows. Firstly, although on the surface Swedish industrial relations have shifted from a centralized nature to industry-level decentralization, industrial relations at the company level have not changed drastically. In the past, workplace unions got wage increases higher than those specified in central agreement by "faking" the efficiency of piecework through negotiations with bosses. At present, the wage system has changed to a merit-based pay system. Under this system, workplace unions maintain strong bargaining power and raise member's wages collectively by negotiating evaluations and the distribution of merit-based pay. Secondly, collective agreements at industry level lead to restraints on bargaining power of company-level union, especially those in large companies. Finally, I suggest that the unions' strong bargaining power in workplaces may be the key driving force in maintaining a two-tier industrial relations system in Sweden.
