What is the Danish model?
The Danish model is a decentralized system in which pay and working conditions are established by collective-bargaining agreements between trade unions and employers’ organizations. Our unions are strong, mostly because employers and employees both gain from the relationship. If the labor agreements are not respected, workers have the right to go on strike and, conversely, the employers have the right to lock out workers. The state interferes only if negotiations break down. They rarely do.
Why are Danish people happy?
According to the Employment Relations Research Centre at the University of Copenhagen, Danes in general are happy with the Danish model, not only because it makes economic sense but also because it creates a sense of common purpose that ensures the dignity of every citizen. It can also encourage social mobility.
Why did Leif live in Denmark?
Because of collective bargaining, he and his fellow workers were ensured decent pay. In 1995, he moved into the very neighborhood his dad had said was beyond his reach. He still lives there. Leif’s story is not uncommon in Denmark, where the working class can be lifted into the middle class.
How much does McDonald's make an hour?
We have something even better. Yes, McDonald’s workers make $22 an hour, but it’s because of Denmark’s ‘flexicurity’ model. Shopkeepers were back at work last week in Copenhagen, where stores had been closed for months because of the coronavirus pandemic. (Philip Davali/AP)
Do Danes have collective agreements?
For the private labor market, they account for three out of four companies. Danes do have industries that aren’t covered by collective agreements, especially those that include companies arising from the growth of the platform economy.
Is McDonald's expensive in Denmark?
It must be extremely expensive to eat at McDonald’s in Denmark, or so Americans could be forgiven for thinking after Rep. Alexandria Ocasio-Cortez (D-N.Y.) noted the chain’s workers here in Denmark are paid $22 an hour and get six weeks’ paid vacation a year. “It is utterly embarrassing that ‘pay people enough to live’ is a stance that’s even up for debate,” she tweeted, as her fellow lawmakers battled over whether to include a $15-an-hour minimum wage mandate in the pandemic relief bill making its way through Congress.
Is Denmark a rich country?
We are a wealthy country with a very high employment rate. In the fourth quarter last year, even during a pandemic, 74 percent of the working-age population was employed, compared to 67.9 percent in the United States, according to the Organization for Economic Cooperation and Development. We recover more quickly from crises because of the flexicurity model, too. Just as companies can easily scale down during economic downturns, they can scale up fast. When covid-19 shut down our society, Denmark saw rising unemployment just as other countries did. But we also saw an immediate positive influence on the statistics as soon our working life got back closer to normal. The people who lost their jobs did not need to fear for their future because of our high levels of social protection and vigorous labor market policy.
