It contrasts to enterprise bargaining where agreements cover individual firms.
[1] Research by the OECD,[2] ILO[3] and the European Commission[4] has also linked sectoral bargaining to higher real wages, lower unemployment, fewer strikes and greater wage equality through an unexplained method.
[7] Under the Adequate Wage Directive 2022 article 4, a member state with collective bargaining coverage under 80% will be required to make an "action plan" to achieve 80% coverage, effectively removing the constituents right to choose whether or not to be affiliated with a union.
[11] Collective bargaining coverage has generally fallen across EU member states, and most substantially in Greece, Romania, Slovakia, Germany and Slovenia, though policies to raise coverage have been implemented including (1) better employer organisation, (2) tying public procurement to collective agreements—as in half of German states by 2021—and (3) encouraging more union members.
Today industries like screenwriting, hotels, and railroads still see sectoral bargaining predominate.