Countries With the Strongest Collective Bargaining Rights in 2025

In 2025, as labor movements navigate shifting economic and political storms, a few countries in 2025, as labor movements deal with developing economic and political storms, there are a number of countries that distinguish themselves in their safeguards of strong collective bargaining rights. Collective bargaining – the process of unions or employee associations negotiating with employers over wages, benefits, conditions of work, etc – remains an important indicator of labour power and social justice. While nations scrape backwards on worker protections, some governments continue to sustain strong legal protections and meaningful institutions that facilitate collective bargaining, in reality. 

This blog has a look at the top performers in 2025, what makes their systems work, and why those models are important for worker rights on a global level.

Why the Right to Collective Bargaining is Important

Great collective bargaining systems do more than improve union power—they help reduce wage inequality, create industrial peace, and ensure productivity gains are shared with workers. Countries with effective systems typically have high union density, legal protection against employer retaliation, ways to work towards sector-wide or national agreements, and institutional support (e.g., labour courts, monitoring agencies). When collective bargaining rights are weak, however, workers often lack protection for attempts to organise, agreements can be fragmented, or workers can be met with increased suppression.

Countries with the Strongest Collective Bargaining Rights (2025)

The following is a list of a number of countries with strong collective bargaining systems. (Again, as opposed to the “highest,” “strongest” here indicates both statutory entrenchment and actual enforcement.)

CountryKey Strengths / MechanismsNotes & Examples
NorwayHigh union density, sectoral collective agreements covering many workers, strong wage-setting institutionsFrequently cited among leading nations in labour rights rankings
Denmark“Flexicurity” model balances labour flexibility and protection; collective negotiations determine wages broadlyNo statutory minimum wage — wages set via collective bargaining
SwedenAround 90% of workers have conditions set through collective bargaining, and union cooperation with employersNegotiations are widely respected and enforced
GermanyStrong works councils, codetermination (employee representation on boards), and sectoral bargainingThe German co-determination model remains resilient in modern times
NetherlandsActive labour unions, widespread collective bargaining in many sectors, and legal backing for union rightsCollective agreements extend to many non-union firms in practice

These nations illustrate that the power of collective bargaining rests in law but also in practice – how the institutions of collective bargaining coexist with culture and enforcement. 

Difficulties & Declines in Respecting Collective Bargaining Worldwide

Some countries still have strong systems, but many have their protections eroded. The 2025 ITUC Global Rights Index states that 80% of countries had restrictions (union-busting, preventing enforcement of agreements, legal restrictions, etc) on collective bargaining rights. As of now, only seven countries are rated as the best (i.e., there were only infrequent violations) in the respect of fairly treating workers’ rights overall. The norm in many areas (Latin America, Asia, Africa) is that labour is suppressed, and there are no strong legal protections.

Frequently Asked Questions

How can we characterise “strongest” collective bargaining rights?

In this case, we assess factors such as guaranteed protections (constitutional or statutory), union density, enforcement of agreements, sectoral or national bargaining mechanisms, protections against retaliation and institutional support such as labour courts or mediation mechanisms. 

Can a country ratify ILO conventions, but have weak practice?

Yes. For instance, the ILO Collective Bargaining Convention (C154) is ratified by about 51 states. However, ratification does not mean strong enforcement or real bargaining practices. 

What does codetermination in Germany mean for collective bargaining?

In Germany, codetermination means workers have a role on company boards and in works councils. This structural involvement increases bargaining power while allowing for worker interests and firm strategy to align.

Are there regions where collective bargaining does not take place?

Yes. In a number of countries in the Global South, the rights to collective bargaining are limited or exist only on paper because of frequent violations and weak enforcement. The 2025 ITUC report notes that there are widespread restrictions globally.

What is the trajectory of collective bargaining rights going forward?

A worrying trajectory globally. Verbal and physical abuses of workers are growing in number and worker protections are under threat. There are countries with historically strong institutions and political action models, and those can continue to exist. Building the rule of law, strengthening the independence of unions, and ensuring enforcement are still critical goals.

khushboo

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