Denmark has an effective labour market based on agreements made directly between employers and employees both in the private and in the public sector. The state only regulates a few areas in the labour market through overall framework legislation that is completed by the organisations during negotiations.
The majority of the local government employees are members of a trade union. Most of these trade unions have joined forces in a negotiation cartel called KTO. KTO is the counterpart of LGDK at the general collective bargaining that takes place every three years.
During the collective bargaining, wage and employment terms for local government employees are negotiated, and according to tradition in Denmark the parties involved has decisive influence on the working conditions of local government employees.
LGDK is the employers association and negotiation party of the municipalities facing the trade unions of the local government employees. In addition to wage and pension, general employment terms such as pay during sickness, maternity leave, holiday, notice of termination, working hours, rest periods, days of rest etc. are negotiated during the collective bargaining.
The municipality is normally the largest single employer in the local community. Municipalities as employers include more than 100 different staff groups with approx. 431,000 FTEs (full-time equivalent). LGDK is thus the largest public employer in Denmark.
LGDK has a close collaboration with the municipalities which enables us to include their wishes and needs regarding wage and employment terms in the negotiations. In addition, LGDK provides the municipalities with wage and personnel assistance such as information, guidance, courses and consulting services.