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Concept
Collective agreement
Summary
A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company (or with an employers' association) that regulates the terms and conditions of employees at work. This includes regulating the wages, benefits, and duties of the employees and the duties and responsibilities of the employer or employers and often includes rules for a dispute resolution process.
In Finland, collective labour agreements are universally valid. This means that a collective agreement in an economic sector becomes a universally applicable legal minimum for any individual's employment contract, whether or not they are a union member. For this condition to apply, half of the workforce in that sector needs to be union members, thus supporting the agreement.
Workers are not forced to join a union in a specific workplace. Nevertheless, with 70% average unionization, most economic sectors are under a collective labour agreement. An agreement does not prohibit higher wages and better benefits, but establishes a legal minimum, similarly to a minimum wage. Furthermore, a national income policy agreement is often, but not always reached, which includes all trade unions, employers’ associations, and the Finnish government.
German labour law
Collective agreements in Germany are legally binding. Germans pride themselves in a supposedly more cooperative spirit in industrial relations when compared to other countries, for example when contrasted to the historically more adversarial nature of industrial relations in the United Kingdom as described below. German workers by law have a right to representation on company boards. Together, management and workers are considered "social partners".
Like in Finland, collective labour agreement determinate a universal applicabile legal minimum wage, which is universally valid (in Latin: erga omnes), whether the worker is a member of a trade union or not.
Official source
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Collective bargaining
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong.
Labour law
Labour laws (also known as labor laws or employment laws) are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union. Individual labour law concerns employees' rights at work also through the contract for work. are social norms (in some cases also technical standards) for the minimum socially acceptable conditions under which employees or contractors are allowed to work.
Strike action
Strike action, also called labor strike, labour strike, or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became common during the Industrial Revolution, when mass labor became important in factories and mines. As striking became a more common practice, governments were often pushed to act (either by private business or by union workers). When government intervention occurred, it was rarely neutral or amicable.