Home » Blog » Explain The Concept Of Collective Agreement

Explain The Concept Of Collective Agreement

(Last Updated On: April 9, 2021)

In Finland, collective agreements are of general application. This means that a collective agreement in an industry becomes a general legal minimum for an individual`s employment contract, whether or not he or she is unionized. For this condition to apply, half of the workers in this sector must be unionized and therefore support the agreement. Read also: The collective agreement means considerable benefits In addition, there are generally binding collective agreements. These important agreements also bind disorganized employers and workers who work for them. The labour and employment legislation adopted by the Finnish parliament lays the foundations for collective agreements. As minimum wages are not set by Finnish labour and employment legislation, workers` wages are based on collective agreements negotiated by trade unions. Always check the collective agreement that respects your job when you start your new job. Information about benefits and rights guaranteed by the collective agreement is often valuable.

Once an interim agreement has been reached between the employer and union representatives, each union member has the opportunity to vote in favour of its acceptance or rejection. If at least 50% of union members who vote accept the agreement, it becomes legally binding. If union members do not accept the agreement, the employer and union representatives can continue negotiations. Alternatively, the union may call for a strike vote. In addition, a strike vote must obtain at least 50% of the vote. Very rarely, if a union cannot obtain ratification or strike authorization, it will waive its right to represent workers. A collective agreement is a written contract between an employer and a union representing workers. The KBA is the result of a broad negotiation process between the parties on issues such as wages, hours and terms of employment. Content In principle, collective agreements can deal with all issues within the scope of the collective autonomy of social partners.

However, there are a number of exceptions to this principle. On the one hand, the law gives a positive delineation of the content of the agreements. Article 5 of the Collective Relations Act stipulates that they may govern the reciprocal rights and obligations of workers and employers; relations between states that are signatories to an agreement; dispute resolution procedures resulting from individual employment contracts, the introduction of conciliation, conciliation and arbitration mechanisms. This formulation reflects the distinction made by lawyers between the mandatory and prescriptive parts of collective agreements. In addition, the law (mainly in Article 6) contains a negative delineation of the content of the agreements. First, the general limitations arise from the limits of collective autonomy itself: collective agreements must not regulate economic activities with regard to the working time of companies, the tax system and price formation. Second, there are a number of limitations on autonomy arising from compliance with constitutional and ordinary provisions, a general restriction that stems from the hierarchy of legal sources that the law itself establishes, stating that collective agreements should not restrict the exercise of fundamental constitutional rights and should not benefit from binding legislation. The prohibition of trade union affiliations (closed store) is a consequence of this. It is also prohibited to violate the legal provisions relating to minimum working conditions; Only provisions that are more favourable to workers are allowed, whether they are created by individual autonomy or, as a general rule, collective autonomy.

Topics

  • No categories