Section 2. Basic concepts. The term „collective agreement” refers to a legal act governing industrial, socio-economic and professional relations between the employer and workers in a company, organization or organization (hereafter referred to as „companies”). Workers are not required to join a union in a given workplace. Nevertheless, most industries, with an average union training of 70%, are subject to a collective agreement. An agreement does not prohibit higher wages and better benefits, but sets a legal minimum, much like a minimum wage. In addition, an agreement on national income policy is often, but not always, reached, bringing together all trade unions, employers` organisations and the Finnish government.  Although the collective agreement itself is not applicable, many of the negotiated terms relate to wages, conditions, leave, pensions, etc. These conditions are included in a worker`s employment contract (whether the worker is unionized or not); and the employment contract is of course applicable. If the new conditions are not acceptable to individuals, they may be contrary to their employer; but if the majority of workers have agreed, the company will be able to dismiss the complainants, usually unpunished. In the event of the dissolution of a business according to the procedure and under the conditions set out in the law, the collective agreement remains in force throughout the dissolution process.
Section 3- Compliance of the collective agreement, agreement and employment contract with the legislation of thought. The clauses of collective agreements and agreements concluded under the legislation are binding on all companies to which they apply. The Swedish Association of Industrialists is bound by thirteen collective agreements. Seven of them are employment contracts. The Industrial Workers` Union Metall is the opponent in five agreements, Pappers (The Swedish Paper Workers Union), GS (Swedish Union of Forestry Workers, Wood and Graphic Designers) in one and SEKO (Union of Service and Communication Employees) in two. The Swedish Association of Industrialists is also bound by four collective agreements for employees. The counterparties to this agreement are the employee unions Ledarna (the Swedish organisation for managers), Unionen and Sveriges Ingenjurer (Swedish Federation of Graduate Engineers). In addition, the Swedish Association of Industrial Employers` Organisations is bound by a collective agreement that includes both blue-collar and white-collar counterparties that exist in the same agreement with Pappers (The Swedish Paper Workers Union) as a worker`s equivalent. In the event of a transfer of ownership of the company`s assets, the validity of the collective agreement is maintained for three months. During this period, the parties may negotiate a new collective agreement or maintain, amend or complete the existing agreement.
Collective bargaining is a process of bargaining between employers and a group of workers who aim to regulate wages, working conditions, benefits and other aspects of workers` compensation and workers` rights. The interests of workers are generally represented by representatives of a union to which the workers belong. Collective agreements concluded in these negotiations generally define the size of wages, working time, training, health and safety, overtime, claim mechanisms and rights to participate in professional or professional affairs.  Cases in paragraph 1 of this section are considered at the request of one of the parties to a collective agreement or a competent commission agreement or at the initiative of the Crown. The union can negotiate with a single employer (who usually represents a company`s shareholder) or with a group of companies, depending on the country, in order to reach an industry-wide agreement.