The Danish Model
In Denmark, there is no comprehensive governmental interference in the Danish labour market or any legislation regarding wages or working conditions. This makes the Danish labour market very unique. There are five basic dynamics, which defines the Danish labour market: Security, stability, trust, efficiency, and flexibility.
You will find a clear division of responsibility between the Danish government and the social partners, regarding the labour market policies. The government intervenes as little as possible in labour market issues. When handling concrete challenges on the labour market, the Danish government invites the social partners to tripartite discussions to find an agreement.
The labour market is a hybrid combination of on the one hand a well-developed and extensive social protection system and on the other hand an active labour-market policy with flexible regulations. There is a general open and inclusive focus on employment security, which makes companies less hesitant to recruit new employees and let them adjust, as it is relatively easy to dismiss employees. However, this also makes workers more open to mobility and job changes. This is what is known as the flexicurity model, which consists of the three core elements:
- Employers are able to hire and fire, without excessive costs for dismissing employees.
- Employees who join an unemployment insurance fund receive up to two years unemployment benefit after losing their job.
- In order to get unemployed Danes back to work quickly, the government has education and retraining programs, while also providing counseling services.
Further, the Danish state provides subsistence payments for Danes who lose their livelihood due to illness, divorce, or unemployment, and who do not qualify under other social welfare schemes.
Trade Union (fagforening) and Unemployment insurance (A-kasse)
In Denmark, legislation covers specific topics such as health and safety, holiday entitlements, sickness benefits, equal treatment, equal pay, or maternity/ paternity leave. A Trade Union knows these legislations very well and will help you on these matters. A Trade Union will stand by you and your interest, if you are faced with e.g. settling on agreements, contracts, or salary negotiation. The main focus of a Trade Union is your legal rights as an employee. Therefore Trade Unions have many lawyers and specialists who can help you in regard to legal matters. In order to become a member of a Trade Union, a monthly fee is charged.
Your choice of trade union depends on your education, as the different unions are each specialized in a specific field of work. For example, the trade union IDA represents engineers in Denmark and DJØF represents a broad range of academics in Denmark. Some of the biggest Danish unions are:
IDA - The Danish Society of Engineers in Denmark
Djøf - Association of academics
Finansforbundet - Financial Services Union Denmark
Dadl - the Danish Medical Association
Pharmadanmark - Association of Professionals in Pharmaceutical Science
3F - The United Federation of Danish Workers
FOA - Trade and Labour
The unemployment insurance provides security in case of unemployment. This insurance entitles you to a monthly benefit for a period of time in case you should find yourself without work and thus income. As with other insurances, this Unemployment Insurance costs a monthly or annual fee in order to be a member, regardless of your job situation (usually the unemployment insurance is free for students).
Trade Union Representative (Tillidsrepræsentant)
The elected trade union representative will take up concerns from the employees with management and usually has a mandate to negotiate locally on pay or other work-related arrangements. There can be several trade union representatives at the same workplace, since a union representative typically only represents one professional group. Your trade union representative is mentioned in your employment offer by the University.
The trade union representative’s primary task is to represent the interests of the group of colleagues who have chosen him or her to represent them. It is however not a legal requirement to have a trade union representative at a workplace, but up to the employer to decide.
The trade union representative is elected democratically for a period of two years. In case the colleagues are dissatisfied, they can convene a meeting where they decide whether he or she should continue as their representative. However, it is rare for union representatives to be "overthrown", but the possibility makes it important for the trade union representative to make sure that there is collective support for the agreements and compromises he or she enters into.
It is often in relation to collective bargaining that the role of the trade union representative becomes visible. However, there are several other tasks that are handled by the trade union representative, regarding the individual employees. Overall, the trade union representative has to ensure that the employer complies with laws and agreements in relation to the employees. For example, the trade union representative may need to assist an employee in a sick leave interview with the employer, to ensure that the employee is aware of his or her rights, opportunities, and obligations under the law or a collective agreement. Furthermore, it can be possible to have the trade union representative present at your wage negotiations. As a new employee, you are also contacted by the representative, before you start your job.
Further, the trade union representative has a duty of confidentiality. This means that you can come forward to the representative about problems at the workplace, like inappropriate behavior, as he or she is not allowed to tell that it came from you. Hereby, the trade union representative can be a safe person to go to in the need of help.
Wages in Denmark
The wages in Denmark are defined exclusively in collective agreements. The wage-setting process is dynamic, since it is dependent on market demands and other changeable elements in society. This helps ensure flexibility for companies, as the wages are determined by the economic situation at each company.
The general framework of the wage-setting is negotiated between employers and employees within collective agreements. Even though there is no minimum wage in Denmark, the general wage level is high.
At workplaces, salaries are negotiated once a year. You are also entitled to a wage negotiation, when taking up employment with the University. Usually, the trade union representative handles the negotiations, but sometimes it is handled by the individual employee. Before the negotiations, the trade union representative will inform the staff when it is time to submit any requests for salary changes. It can also be possible to request allowances for special duties, qualification allowances, and one-off remunerations.
Performance and development reviews
Performance and development reviews (PDRs, Danish: MUS) help give managers and staff a common picture of current and future tasks and provide a good basis for ensuring wellbeing and development in the workplace. At KU we have therefore decided that everyone should be offered a performance and development review once a year. All the different forms of reviews are focused on the future and on development, both skills development and finding the best possible match between skills and challenges. The latter ensures that the employees’ skills are used well and increases job satisfaction.
PDR (individual performance and development reviews) is an opportunity for you as an employee to improve your well-being on the job as well as talk about future development for you professionally. PDR is a conversation with your manager that will last about an hour. Your manager will ask questions, but you are very welcome to contribute to the conversation as well. Topics such as continuing education, mental health, colleagues, courses, responsibilities, or development of competence ect. are all welcome. By following the link above you will also access some material that
GPDR (Group performance and development reviews) has much the same purposes as the above-mentioned PDR. GPDR is an opportunity for you to participate in dialogue and reflection with your colleagues. Topics such as atmosphere at the office, well-being, motivation, development, and results are common occurrences. The group participating in GPDR can be anything from a small team to a department. Typically GPDR will have a duration of half-a-day or one day and will include dialogue, common interests for the department, and team building exercises as a way to learn and develop together.
Thus, GPDR are designed to create greater consistency between the organisation’s goals and the individual unit’s goals and development, and can be used at all organisational levels. GPDRs can help create a better dialogue between different layers of management and employees. GPDRs are not obligatory and cannot be used as a substitute for PDRs.
The general collaboration committee (HSU)
The general collaboration committee (HSU) contributes to ensuring the development of cooperation between management and employees. This is done by means of reciprocal information, discussion, and setting of guidelines for work and staff matters, new technology, continuing education activities, and the financial situation of the workplace. The general collaboration committee deals with questions that are common to the entire university.
Composition
The general collaboration committee consists of 24 members. The Rector is chairman and appoints nine management representatives. The 14 seats of the employee representatives are distributed by agreement between the joint union representatives at UCPH.