Government bias in wage bargaining

In times of economic difficulties, governments exert unusually strong influences on wage bargaining. The measures taken are of various kinds, ranging from non-binding guidelines to compulsory restrictions of limited scope - such as the suspension of cost-of-living allowances for those earning the highest salaries - to general wage freezes or a blanket obligation to secure prior approval of collective agreements by the public authorities. These biases tend to limit the freedom of employers and workers or their organizations to set wages by direct bargaining.