In this section, real wage data were used in different economic sectors. In general, however, collective bargaining sets negotiated wages that may differ from actual wages. In the euro area, negotiated wages have increased less than real wages and labour productivity since 2000 (Box 3.3). Negotiated wages have followed productivity only with considerable lag, which in the short term appears to have led to a misdirection of wage growth rates and productivity at the macroeconomic level. Section 2 of the Court of Auditors is formulated in a way common to the laws of many European countries that impose the principle of derogation. In the Czech Republic `33 `33`, `Italy`, `34`, Sweden `35`, `Holland`, `36` and Belgium `37, trade unions at the enterprise level have the right to deviate from the law in their collective agreements, even if the derogation is less favourable to the worker, provided that such a possibility is provided for by the sector`s collective agreement. In Sweden,38 for example, the law sets mandatory maximum working hours for partners for whom working time is not agreed either through collective agreements or others. The collective agreement covers you against arbitrary dismissals and dismissals, because the agreements set out the rules to be followed in the event of termination, i.e. the so-called termination procedures.  Peetz, D. and E.
Rasmussen (2018), “Awards and collective bargaining in Australia and New Zealand,” mimeo.  Eurofound (2017), Developments in collective agreed pay 2016, Eurofound, Dublin. The taxonomy of collective bargaining systems is extracted from the Chapter 2 scoreboard. It proposed a classification system based on two main aspects: (i) the degree of centralization, which is characterized by the dominant level of negotiation, as well as the rules and application of extensions, derogations, opt-outs and the principle of benefit; and (ii) the degree of wage coordination between sector agreements. Appendix 3.A contains additional details. The following five categories of collective bargaining systems have been identified: 12 coverage rates: coverage of collective agreements is not only the density of unions, but is essential to measure the relevance of the system. Collective agreements that cover a large proportion of workers can have a macro-economic effect – positive or negative – on employment, wages and other consequences of interest than agreements limited to a small number of companies. The approach is to examine the role of collective bargaining in the distribution between labour sectors, i.e.
the share of value added in employees. Schwellnus, Pak and Pioneer (2018) use industry-level data to study, among other things, the role of collective bargaining in workforce size.