Job retention schemes in Europe during the COVID-19 pandemic – different shapes and sizes and the role of collective bargaining

Abstract

During the COVID-19 pandemic all the EU Member States established some kind of job retention scheme to cushion the employment effects of the economic crisis. While all job retention schemes share this general objective, they differ considerably as regards their institutional design and underlying functional logic. The aim of this article is to analyse the relevant institutional diversity across Europe, with a particular focus on the role of collective bargaining and employee representation structures in the design and implementation of job retention schemes. Based on an analysis of key institutional features of such schemes implemented during the pandemic, the second aim of the article is to identify a set of minimum standards for ‘good job retention schemes’ that ensure efficient and socially adequate use. These criteria include the following elements: ensuring inclusiveness; ensuring a minimum allowance to prevent workers from ending up below the subsistence level when on such a scheme; measures preventing misuse and deadweight losses; and making job retention schemes support conditional on the involvement of trade unions and employee representation structures.