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A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through
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 int ...
for employees by one or more
trade union A trade union (or a labor union in American English), often simply referred to as a union, is an organization of workers who have come together to achieve common goals, such as protecting the integrity of their trade, improving safety standard ...
s with the management of a company (or with an
employers' associationAn employers' organization or employers' association is a collective organization of manufacturers, retailers, or other employer Employment is a relationship between two parties, usually based on contract A contract is a legally binding docum ...
) 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.


Finland

In
Finland Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the west, Russia to the east, Norway to the north, and is defined by the Gulf of B ...

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 A workplace is a location where someone works for their employer or themselves, a place of employment. Such a place can range from a Small office/home office, home office to a large office building or factory. For Industrial society, industriali ...

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 A minimum wage is the lowest remuneration Remuneration is the pay or other financial compensationFinancial compensation refers to the act of providing a person with money Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, ...
. Furthermore, a
national income policy agreement Finnish national income policy agreements or comprehensive income policy agreements (, often called ''tupo''; ) are tripartite agreements between Finnish trade union A trade union (or a labor union in American English American English ( ...
is often, but not always reached, which includes all
trade union A trade union (or a labor union in American English), often simply referred to as a union, is an organization of workers who have come together to achieve common goals, such as protecting the integrity of their trade, improving safety standard ...
s,
employers’ associationAn employers' organization or employers' association is a collective organization of manufacturers, retailers, or other employers of wage labor. Employers' organizations seek to coordinate the behavior of their member companies in matters of mutual i ...
s, and the Finnish government.


Germany

Collective agreements in Germany are legally binding, and this is accepted by the population, and it causes no alarm. Whereas in the UK there was (and arguably still is) a "them and us" attitude in industrial relations, the situation is very different in post-war Germany and in some other Northern European countries. In Germany, there is a much greater spirit of cooperation between the two sides of industry. For over 50 years, German workers by law have had representation on company boards. Together, management and workers are considered "social partners".


Sweden

In Sweden about 90 per cent of all employees are covered by collective agreements, in the private sector 83 per cent (2017). Collective agreements usually contain provisions concerning minimum wages. Sweden does not have statutory regulation of minimum wages or legislation on extension of collective agreements to unorganized employers. Non-organized employers can sign substitute agreements directly with trade unions, but many do not. The Swedish model of self-regulation applies only to workplaces and employees covered by collective agreements.


United Kingdom

At
common law In law, common law (also known as judicial precedent or judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions. ''Black's Law Dictionary'' is the most-us ...
, Ford v A.U.E.F.
969 Year 969 ( CMLXIX) was a common year starting on Friday (link will display the full calendar) of the Julian calendar The Julian calendar, proposed by Julius Caesar in , was a reform of the Roman calendar. It took effect on , by edict. It ...
the courts once held that collective agreements were not binding. Then, the
Industrial Relations Act 1971 The Industrial Relations Act 1971 (c.72) was an Act of the Parliament of the United Kingdom The Parliament of the United Kingdom is the Parliamentary sovereignty in the United Kingdom, supreme Legislature, legislative body of the United Kingd ...
, introduced by
Robert Carr Leonard Robert Carr, Baron Carr of Hadley, (11 November 1916 – 17 February 2012) was a British Conservative Conservatism is a Political philosophy, political and social philosophy promoting traditional social institutions. The central ...

Robert Carr
(Employment Minister in
Edward Heath Sir Edward Richard George Heath (9 July 191617 July 2005) was a British politician who served as from 1970 to 1974 and from 1965 to 1975. Heath also served for 51 years as a from 1950 to 2001. Outside of politics, Heath was a , a musician, ...
's cabinet), provided that collective agreements were binding unless a written contract clause declared otherwise. After the demise of the Heath government, the law was reversed to reflect the tradition in British industrial relations policy of legal abstentionism from workplace disputes. The law is now contained in the
Trade Union and Labour Relations (Consolidation) Act 1992 The Trade Union and Labour Relations (Consolidation) Act 1992c 52 is a UK Act of Parliament Acts of parliament, sometimes referred to as primary legislation, are texts of law passed by the Legislature, legislative body of a jurisdiction (often a ...
s.179, whereby In the United Kingdom, collective agreements are conclusively deemed to be not legally binding. This presumption may be rebutted when the agreement is in writing and contains an explicit provision asserting that it should be legally enforceable. Although the collective agreement itself is not enforceable, many of the terms negotiated will relate to pay, conditions, holidays, pensions and so on. These terms will be incorporated into an employee's contract of employment (whether or not the employee is a union member); and the contract of employment is, of course, enforceable. If the new terms are unacceptable to any individuals, they can object to his employer; but if the majority of workers have acquiesced, the company will be able to sack the complainants, normally with impunity. The British law reflects the historic adversarial nature of UK industrial relations. Also, there is a background fear by employees that if their trade union sued for breach of a collective agreement, the union could become bankrupt, leaving employees without representation in collective bargaining. This unfortunate situation may be slowly changing, partly through
EU
EU
influences. Japanese and Chinese firms that have UK factories (particularly in the motor industry) try to imbue their workers with the company ethic. This approach has been adopted by indigenous UK firms such as
Tesco Tesco plc () is a British multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational state, a ...

Tesco
.


United States

The United States recognizes collective bargaining agreements.


See also

*
Intention to be legally boundIntention to create legal relations', otherwise an "intention to be legally bound", is a Contract theory, doctrine used in contract law, particularly English contract law and related common law jurisdictions. The doctrine establishes whether a court ...
*
Labour economics Labour economics seeks to understand the functioning and dynamics of the markets Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland ...
*
Labour law Labour law (also known as labor law or employment law) mediates the relationship between workers, employing entities, trade unions and the government. Collective labour law relates to the tripartite relationship between employee Employment is ...
*
MLB Collective Bargaining Agreement The Major League Baseball Players Association (or MLBPA) is the collective bargaining representative for all current Major League Baseball players. All players, Manager (baseball), managers, Coach (baseball), coaches, and athletic trainers who hol ...
, an agreement between the
Major League Baseball Players Association The Major League Baseball Players Association (or MLBPA) is the collective bargaining Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditi ...
and the
Major League Baseball Major League Baseball (MLB) is a professional baseball organization and the oldest major professional sports league in the world. , a total of 30 teams play in Major League Baseball—15 teams in the National League (NL) and 15 in the Ame ...
*
MLS Collective Bargaining Agreement The MLS Players Association, also referred to as the MLSPA, is the trade union, union of professional Major League Soccer players. The MLS Players Association serves as the exclusive collective bargaining agreements representative for all current ...
, an agreement between the
MLS Players Association The MLS Players Association, also referred to as the MLSPA, is the union of professional Major League Soccer Major League Soccer (MLS) is a men's professional association football, soccer league sanctioned by the United States Soccer Federat ...
, and the
Major League Soccer Major League Soccer (MLS) is a men's professional league sanctioned by the , which represents the sport's highest level in the . The league comprises 28 teams—25 in the U.S. and 3 in Canada—and plans to expand to 29 teams by the 2023 sea ...
. *
MLR Collective Bargaining AgreementMLR may refer to: Finance and mathematics * Minimum lending rate * Monotone likelihood ratio * Multiple linear regression – see Linear regression Government * Ministry of Land and Resources People * Mary Lynn Rajskub, actress Places * MLR I ...
, an agreement between the
United States Rugby Players Association The United States Rugby Players Association, also referred to as the USRPA, is the trade union, union of professional Major League Rugby players. United States Rugby Players Association is a member of International Rugby Players Association (IRPA). ...
, and the
Major League Rugby Major League Rugby (MLR or USMLR) is a professional rugby union competition and the top-level championship for clubs in North America. In the 2021 season it was contested by twelve teams: eleven from the United States and one from Canada. Offici ...
. *
NBA Collective Bargaining Agreement The NBA Collective Bargaining Agreement A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining Collective bargaining is a process of negot ...
, an agreement between the
National Basketball Players Association The National Basketball Players Association (NBPA) is a Labor unions in the United States, labor union that represents National Basketball Association (NBA) players. It was founded in 1954, making it the oldest trade union of the four major Nort ...
and the
National Basketball Association The National Basketball Association (NBA) is a professional basketball sports league, league in North America. The league is composed of 30 teams (29 in the United States and 1 in Canada) and is one of the four major professional sports leagu ...
*
NFL Collective Bargaining Agreement The NFL Collective Bargaining Agreement (CBA) is a labor agreement which reflects the results of collective bargaining negotiations between the National Football League Players Association (NFLPA) and National Football League (NFL) (the commissi ...
, an agreement between the
National Football League Players Association The National Football League Players Association, or NFLPA, is a labor unions in the United States, labor union representing National Football League (NFL) players. The NFLPA, which has headquarters in Washington, D.C., is led by president J. C. ...
and the
National Football League The National Football League (NFL) is a professional American football American football, referred to simply as football in the United States and Canada and also known as gridiron, is a team sport A team sport includes any s ...
*
NHL Collective Bargaining Agreement The NHL Collective Bargaining Agreement (CBA) is the basic contract between the National Hockey League (NHL) (31 team owners and NHL commissioner) and the NHL Players' Association (NHLPA), designed to be arrived at through the typical labour-manag ...
, an agreement between the
National Hockey League Players' Association '' , image = , founded = June 1967 , headquarters = Toronto Toronto (, ) is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a recorded population of 2,731,571 in 2016 in 2016, i ...
and the
National Hockey League The National Hockey League (NHL; french: Ligue nationale de hockey—LNH) is a professional ice hockey sports league, league in North America comprising 32 teams—25 in the United States and 7 in Canada. It is considered to be the premier pr ...


References

{{DEFAULTSORT:Collective Agreement Collective agreements