Denmark (DK)

Employment
Wages
Working Time
Leave
Social Insurance
Health and Safety
Trade Union Influence
Minimum Standards
Trade Union Participation

Employment

The total number of employees is 35,000, thereof 25,000 are working in agriculture and 10,000 in horticultural production. Most agricultural workers are dismissed in winter although the annual working time has been laid down in collective agreements. Most of the 12,000 seasonal workers are from Poland, 2,000 are from the Ukraine.

table International Comparison of Employment

Wages and Labour Costs

In Denmark the employers' association and the trade union negotiate one collective agreement for each industry for the whole country (one collective agreement for agriculture, one collective agreement for horticulture). The hourly wage is higher than the EU average, but the state deducts a very high percentage depending on the income level. The contributions to the state are used for financing the social security systems. The income tax rate varies from 8 % (minimum rate) to 63 % (maximum).

One third of the companies (the larger ones) abide by the collective agreements. A total of 20,000 workers are covered by the collective agreement. One third of the companies have no employees, another third are small farmers, and one third have more than 10 employees. That is where the union is strong. In Denmark there is only one collective agreement for agriculture.

Seasonal workers have to be paid under the same rules that apply to their Danish colleagues!

The employer pays 6.75 % of the gross wage into the holiday fund and € 1 into the training fund. This fund is used for financing further training measures including any required continued wage payment.

table International Comparison of Wages and Labour Costs

Working Time

According to the statutory rules the maximum working time must not exceed 48 h per week and 11 h per day. Under the collective agreement a 40 % bonus is paid for the first two hours of overtime, and an 80 % bonus for more than 2 hours. The bonus for weekend work is 80 %. A second solution agreed collectively is flexible annual working time. It allows extra working hours to be collected on an annual working time account in order to avoid unemployment in winter. However, only about 10 % of the employees have used the latter solution.

table International Comparison of Working Time

Leave and Paid Holidays

5 annual holidays have been agreed for every working day/week. Given a 6-day week that means 30 working days off per year. Wage payment continues, with a 12.5 % holiday bonus. 5 days of unpaid leave are possible.

table International Comparison of Leave and Paid Holidays

Social Insurance

Welfare insurance is mainly tax-financed. Anyone who earns an income contributes to the system a percentage that depends on the income level (minimum 8 % - maximum 63 % of the gross income). Services, e. g. medical treatment, are provided free of charge.

The collective agreement also provides for an additional pension scheme. In Denmark unemployment insurance is managed by the trade union. Regardless of union membership a worker may contribute € 45 per month to the trade union's unemployment fund (3 F A). In the event of unemployment he will then receive the according benefit (about 90% of the last gross income). The Danish state co-finances this system by € 45 per month per worker.

Occupational Health and Safety

Qualification certificates are required for forklift truck drivers and for handling pesticides and ammonia.

In 2005 there were 22 fatal accidents in agriculture involving 2 employees.

table International Comparison of Occupational Health and Safety

Trade Union Influence

The degree of unionisation in the Danish trade union is over 65 %, which is higher than the European average. In larger companies (10 workers and more) workers can elect a works council. In horticulture the degree of unionisation is higher than in agriculture due to the larger company size.

table International Comparison of Trade Union Influence

Minimum Standards

In Denmark there is no statutory minimum wage.

table International Comparison of Minimum Standards

Trade Union Participation

The Danish trade unions are closely integrated into a social partnership scheme. Traditionally they have a large political clout. In health insurance companies they just have an advisory function.

table International Comparison of Trade Union Participation

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