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What is a collective agreement?
A collective agreement, also known as a union contract, is a legally binding agreement between an employer and a union representing a group of employees. It outlines the terms and conditions of employment such as wages, benefits, working hours, overtime pay, and other employment conditions. Collective agreements are specific to each industry and may vary in scope, duration, and content.
Why do companies have collective agreements?
Collective agreements are essential in maintaining a good working relationship between employers and employees. They provide a framework for communication and collaboration between the two parties, and they give employees a voice in the workplace. Collective agreements also help to promote fairness, equality, and respect in the workplace, and they provide job security for employees.
How are collective agreements negotiated?
Collective agreements are negotiated between a union representing employees and a company`s management representatives. The negotiations are typically conducted with the assistance of a mediator, and they can take several months to complete. Once the agreement is finalized, it must be approved by both the union and the company`s management team. The agreement is then signed, and it becomes a legally binding document.
What happens if one party violates the collective agreement?
If one party violates the collective agreement, the other party can file a grievance or take legal action. If the grievance is not resolved, it can be referred to an arbitrator who will make a final decision. In some cases, the arbitrator`s decision may be binding, meaning that both parties must abide by it.
In conclusion, collective agreements are critical in maintaining a good relationship between employers and employees. They provide a framework for communication and collaboration, promote fairness and equality in the workplace, and offer job security for employees. If you are a part of a union, make sure that you understand the terms and conditions of your collective agreement, so you can advocate for your rights in the workplace.
