extension procedure

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A statutory procedure that allows a judge or government minister to extend the terms of a multi-employer collective agreement to employers who are not members of the signatory employers' association. Its purposes are to establish minimum terms and conditions, prevent undercutting by employers, and remove the incentive for companies to avoid trade unions. Extension procedures are an important feature of the labour markets of several European states, including Belgium, France, Germany, Greece, Italy, and the Netherlands. Equivalent legislation in the UK was abolished by the Conservative governments of the 1980s, though regulations introduced to counter two-tier wages in the UK public services, following the Warwick Agreement, have reintroduced an element of extension.

Subjects: Human Resource Management.

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