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In the private sector, agreements to provide services are generally short, to keep providers on their toes.
At the same time, the high importance of demand pull from customers and voluntary codes of conduct or voluntary sector agreements as drivers for introducing clean innovations, is a reminder of the internal strength of the private innovation machine, which governments need to leverage.
Representatives of Internet companies, through their trade group the CCIA, argued that it was not the government's place to monitor private sector agreements, and that such monitoring could have a chilling effect on the willingness of tech companies to enter into such agreements.
In Finland, several sector agreements in 2010 included a similar clause allowing individual companies to adjust the agreed wage increase to reflect their own financial circumstances.
In Greece, a 2010 law introduced scope for company agreements to derogate from the wage and working time provisions of sector agreements in cases of economic hardship.
In Norway, a one-off opening clause in most private sector agreements provided local negotiators with the option not to implement the sector increase agreed for 2009.
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General derogation clauses delegate particular issues to be decided at enterprise level under conditions specified in the sector agreement and with outcomes that can deviate from sectoral minima or standards.
These give the debtor the right to impose a restructuring on all creditors, including holdouts, once a certain majority of support for the private sector agreement.
"So this same group of farmers is five times more likely to violate the governmental policy than they are to violate the private sector agreement".
And as the number of such hedge funds holding Greek debt has grown, so has their ability to forestall a restructuring private sector agreement, thus bringing them closer to being able cash in on their risky tactic.
Aside from the default danger, Greece and Europe may well be able to insert provisions into a private sector agreement that would prevent "free riders" — as the holdouts are sometimes called — from receiving their bond payments at all.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com