What is a collective agreement?

A collective agreement is an agreement between one or more employers' organisations and one or more trade union organisations that sets out the terms and conditions of employment for workers. This agreement is negotiated on a voluntary basis between the parties and can apply to a company, a sector of activity, a geographical region or even at national level.

Collective agreements cover a wide range of issues, such as wages, working hours, holidays, health and safety conditions at work, leave, severance pay, leave, working hours, contracts, dismissals and so on. Its aim is to establish a regulatory framework that protects workers' rights and, at the same time, allows for the development of enterprises and the economy in general.

What are their advantages and disadvantages?

One of the main advantages of collective agreements is that they allow for greater stability in labour relations, as they set the rules governing the relationship between employers and workers. In addition, collective agreements can improve the working conditions of employees, as trade unions can negotiate on their behalf for better wages, working hours and additional benefits.

Another advantage of collective agreements is that they allow labour disputes to be resolved peacefully and without recourse to strike action or other forms of protest. When the parties cannot reach an agreement, they can turn to a mediator or arbitrator to resolve the dispute, thus avoiding the negative consequences that a strike can have for both workers and companies.

However, collective agreements can also have some disadvantages. First, they can be difficult to change, which can make it difficult to adapt to changes in the labour market. Secondly, they can limit the ability of firms to make decisions, especially in terms of hiring and firing workers. Finally, collective agreements can be costly for firms, as wages and other benefits may be higher than what the firm would be willing to pay without the agreement.

In some countries, collective agreements are mandatory for companies, while in others they are optional. In general, collective agreements are more common in European countries, where they have a long tradition and are seen as an important way of protecting workers' rights. In the United States, for example, collective agreements are less common and tend to apply to specific sectors of the economy, such as the automotive industry or construction.

What is the purpose of collective agreements?

Collective agreements are intended to set out the working conditions and labour relations between workers and employers in a specific company or sector.

These agreements are negotiated agreements between trade unions and employers, and can cover a wide range of issues, such as wages, working hours, benefits, holidays, job security, training and development, among others.

The purpose of collective agreements is to establish a fair and equitable framework for workers that protects their rights and provides them with job security. In addition, these agreements can also help employers improve the productivity and efficiency of their enterprises by establishing stable and predictable working conditions for their employees.

Types of collective agreements

There are different types of collective agreements, among which the following can be highlighted:

1. Company collective agreements: these are agreements that are negotiated between the workers and the employer of a particular company. These agreements set out the specific working conditions for the workers of that company.
2. Sectoral collective agreements: These are agreements that are negotiated between trade unions and employers' organisations representing companies in a particular sector, such as the construction sector or the health sector. These agreements set out the working conditions for workers in that sector.
3. Inter-company collective agreements: These are agreements that are negotiated between trade unions and several companies in the same or related sectors. These agreements set out the working conditions for workers working in several companies in the same sector.
4. Territorial collective agreements are agreements that are negotiated between trade unions and employers' organisations in a specific geographical area, such as a region or a country. These agreements set out the working conditions for workers working in that geographical area.

What is the duration of a collective agreement?

The duration of a collective agreement can vary depending on the legislation of each country and the negotiations between the parties involved. In some cases, collective agreements have a fixed duration of one year, two years, three years or more, while in other cases they may be indefinite or have a duration until a new one is negotiated.

In some countries, such as Spain, the maximum duration of a collective agreement is four years, although the parties may agree on a shorter duration. There may also be provisions allowing for automatic renewal of the agreement for the same period of time if no agreement is reached for renewal.

It is important to note that, although the duration of a collective agreement has a fixed limit, the parties involved can renegotiate and update the terms and conditions of employment before the agreement expires. If no agreement is reached, the parties can resort to mediation, arbitration or even strikes and demonstrations to put pressure on the other party to negotiate.