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Sectoral collective bargaining is an aim of trade unions to reach a collective agreement that covers all workers in a sector of the economy. It contrasts to enterprise bargaining where agreements cover individual firms. Generally countries with sectoral collective bargaining have higher rates of union organisation and better coverage of collective agreements than countries with enterprise bargaining. Research by the OECD, ILO and the European Commission has also linked sectoral bargaining to higher real wages, lower unemployment, fewer strikes and greater wage equality.
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