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WORKING IN DENMARK

Danish trade union members vote yes to new bargaining agreement

A new collective bargaining agreement was approved by Danish trade union members on Wednesday, securing working conditions for around 600,000 private sector workers for the coming years.

Danish trade union members vote yes to new bargaining agreement
People turn out in support of trade unions during collective bargaining talks in Copenhagen in January. Photo: Sebastian Elias Uth/Ritzau Scanpix

Around 79 percent of the union members who voted did so in favour of the agreement, which was reached by union representatives and employer confederations during negotiations earlier this year.

Turnout in the vote was around 60 percent, according to mediation institution Forligsinstitutionen, which released the result of the voting in a press statement.

Employer organisations all voted for the agreement, giving it 100 percent backing on the employers’ side.

The chairperson of the trade union federation FH (Fagbevægelsens Hovedorganisation), Lisette Risgaard, welcomed members’ decision to accept the deal.

“This is a happy day for all parties. I am proud of all our skilled negotiators who under difficult circumstances have achieved results that members have now approved,” she said in a statement.

Collective bargaining agreements in many sectors of the Danish labour market were thrashed out during the late winter and a draft mediation was presented by FH and the employers’ association DA (Dansk Arbejdsgiverforening) on March 22nd, covering areas that lacked an agreement.

Inflation and the government’s decision to scrap the Great Prayer Day holiday were factors that presented challenges in the 2023 negotiations.

Trade unions negotiate with employers’ organisations every few years to develop collective bargaining agreements (overenskomster in Danish) regulating many aspects of Denmark’s labour market, from wages to paid parental leave and pensions. 

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ECONOMY

IN DATA: Danish incomes rise faster than any time in the last 30 years

The average income earned in Denmark shot up by 6.3 percent in 2023, the largest annual rise in earnings recorded since the early 1990s. We break down the numbers.

IN DATA: Danish incomes rise faster than any time in the last 30 years

The average pre-tax income in Denmark rose to 395,500 kroner in 2023, a 6.3 percent rise on the average in 2022, and the highest year-on-year percentage rise in real incomes seen in the country in 30 years.

The sharp rise was driven primarily by income from investments, with shares and funds which performed poorly in 2022 bouncing back strongly in 2023, leading to a near-doubling in the earnings booked by many Danes. 

"The high increase in the average total income per person before tax in 2023 must be seen in the light of an extremely good year on the financial markets," Statistics Denmark wrote in a press release. The average pre-tax income from assets shot up 77 percent to 24,600 kroner in 2023, after the disappointing 29 percent decline in investment earnings received on average in 2022. 

Income from salaries rose a very solid 4.1 percent, with the average pre-tax salary rising by 10,100 kroner to 255,900 kroner. Income from small businesses rose 3.8 percent from 265,500 kroner to 275,500 kroner, while income for the self-employed was flat compared to 2022 at an average of 18,600 kroner. 

"It's hardly surprising that income is rising on average," Brian Friis Helmer, a private economist at Arbejdernes Landsbank, said in a comment. "Employment rose by more than 30,000 last year, and wages in the private sector, in particular, rose noticeably. With more Danes in work and more in the salary bag, it raises the average income." 

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