Before the union can enter into collective bargaining, it must be certified by the Labour Council. In a short period of time after the certification is received, the union will begin collective bargaining (or negotiations) with the employer. The aim of the negotiations is to reach agreement on the many issues that can be included in the agreement. In Sweden, about 90% of employees are subject to collective agreements and 83% in the private sector (2017).   Collective agreements generally contain minimum wage provisions. Sweden does not have legislation on minimum wages or legislation extending collective agreements to disorganised employers. Unseated employers can sign replacement agreements directly with unions, but many do not. The Swedish model of self-regulation applies only to jobs and workers covered by collective agreements.  Collective agreements are agreements between employers and registered unions that cover workers in the employer`s workplace. However, your business may also be subject to the rules of a collective agreement if you have acquired activities and workers under a collective agreement in connection with a merger or merger and you have not taken the opportunity to waive the collective agreement under Danish workers` law in the event of a business transfer. As a general rule, the negotiation of the first collective agreement lasts up to six months. Negotiations on renewal agreements will also take a few months, but the old agreement will remain in force during negotiations.
Collective agreements are used to supplement legislation or to negotiate scope-specific contracts. The main principle is that collective agreements cannot contain terms that are less than the statutory requirements. The labour and employment legislation adopted by the Finnish parliament lays the foundations for collective agreements. As minimum wages are not set by Finnish labour and employment legislation, workers` wages are based on collective agreements negotiated by trade unions.