Collective agreement in the context of Labor relations


Collective agreement in the context of Labor relations

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⭐ Core Definition: Collective agreement

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.

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👉 Collective agreement in the context of Labor relations

Labour relations in practice is a subarea within human resource management, and the main components of it include collective bargaining, application and oversight of collective agreement obligations, and dispute resolution. Academically, employee relations, a related term, is considered a subarea of labour relations that focuses on non-union settings, whereas labour relations covers both union and non-union workplaces, and both are taxonomically classified under the broader field of industrial relations. Labour relations is defined as "for or with whom one works and under what rules. These rules (implicit or explicit, written or unwritten) determine the type of work, type and amount of remuneration, working hours, degrees of physical and psychological strain, as well as the degree of freedom and autonomy associated with the work."

Labour relations is also known as labour studies in liberal arts and is a multidisciplinary field that draws from economics, sociology, history, law, and political science. Scholars in this field examine labour unions and labour movements. In an interdisciplinary context, it is considered a subfield of labour history that explores human relationships with work in the broadest sense and how these relationships intersect with issues of social inequality. In contemporary contexts, labour relations refers to the study and management of unionized employment settings, which include the employer, management, union(s), and the unionized employees.

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Collective agreement in the context of 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. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.

The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a group of businesses, depending on the country, to reach an industry-wide agreement. Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management, or, in some countries such as Austria, Sweden, Belgium, and the Netherlands, by an employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions, grievance procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA).

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Collective agreement in the context of Sectoral collective bargaining

Sectoral collective bargaining is an aim of trade unions to reach a collective agreement that covers all workers in a sector of the economy. It contrasts to enterprise bargaining where agreements cover individual firms. Generally countries with sectoral collective bargaining have higher rates of union organisation and better coverage of collective agreements than countries with enterprise bargaining. Research by the OECD, ILO and the European Commission has also linked sectoral bargaining to higher real wages, lower unemployment, fewer strikes and greater wage equality.

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Collective agreement in the context of Constitution Day (Denmark)

Constitution Day (Danish: Grundlovsdag [ˈɡ̊ʁɔnlɒwsˌdæːˀ]) is observed in Denmark on 5 June. The day honours the Constitution of Denmark, as both the first constitution of 1849 and the current constitution of 1953 were signed on this date of their respective years. Denmark is one of only a handful countries in the world not to have an official national day, but Constitution Day is sometimes considered the equivalent of such a day, and a day for celebrating Danish democracy.

Though it has never been an official national holiday, Constitution Day was a half-day off work from 1891 until 1975. Since then, collective labour agreements have usually given workers a half-day or the whole day off on Constitution Day. Stores with an annual turnover of at most 43.4 million kroner can stay open on Constitution Day, but most stores must keep closed.

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