Collective Wage Agreement Definition

In Sweden, around 90% of employees are covered by collective agreements and 83% in the private sector (2017). [5] [6] Collective agreements generally contain minimum wage provisions. Sweden has no legislation on minimum wages or laws to extend collective agreements to disorganized employers. Unorganized employers can sign replacement agreements directly with unions, but many are not. The Swedish model of self-regulation applies only to companies and workers covered by collective agreements. [7] Founded in 1886, the American Federation of Labor offered unprecedented bargaining power to a large number of workers. [15] The Railway Labor Act (1926) required employers to negotiate collective agreements with unions. The union can negotiate with a single employer (which usually represents the shareholders of a company) or, depending on the country, negotiate with a group of companies to reach a sectoral agreement. A collective agreement is a contract of employment between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a trade union and employers (usually represented by management or, in some countries such as Austria, Sweden and the Netherlands, by an employers` organisation) on workers` conditions of employment, such as wages, working hours, working conditions, complaint procedures and the rights and obligations of trade unions. The parties often refer to the outcome of negotiations as a collective agreement (CBA) or a comprehensive employment contract (CBA). The right to bargain collectively with an employer enhances the human dignity, freedom and autonomy of workers by giving them the opportunity to influence the definition of employment rules and thus gain some control over an important aspect of their lives, namely their work.

Collective bargaining is not only an instrument for achieving external objectives. on the contrary, [it] is valuable as experience in self-management per se. Collective bargaining enables workers to achieve a form of democracy at work and to guarantee the rule of law in the workplace. . . .

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