The Coverage of Collective Pay‐setting Institutions in Britain, 1895–1990

Abstract

Abstract Fewer than 50% of British employees now have their pay and conditions affected by collective pay‐setting institutions — collective bargaining or wages councils. This paper charts the historical context for the current picture of a decollectivized Britain, constructing a time series on coverage from 1895 to 1990. Extant estimates and sources of coverage data are presented and discussed alongside estimates drawn from a source used only sparingly before now — the number of workers affected by changes in wage rates of national agreements or wage orders. The recent decline in collective bargaining coverage is the most prolonged ever recorded and has been noticeably steeper than the fall in union density, such that the proportion of British workers covered is lower now than in the 1940s. With the abolition of wages councils in 1993, collective pay‐setting machinery now affects the pay and conditions of fewer workers than it did in the 1930s.