The part of the collective agreement that contains provisions on wages and working conditions is technically referred to as the "overenskomst" (agreement), but in everyday language, we often call it the "tariffavtale" (collective agreement), and in this article, we use the word collective agreement to refer to the "overenskomst".
Collective agreement – simply explained
Collective agreements ensure that you, as an employee, have rights and terms that have been negotiated collectively, rather than just what is stated in your employment contract.
When you have a collective agreement, it means you are part of a larger community that has negotiated better terms on your behalf, instead of you having to negotiate your own terms all by yourself.
Simply put, a collective agreement is an agreement that secures you extra rights, or better rights, on top of what the Working Environment Act provides. A collective agreement can never give you worse terms than what you are guaranteed by law.
Definition
A collective agreement is a written agreement between a trade union and an employer or an employers' association. The agreement regulates wage and working conditions, or other employment terms, for a group of employees.
What is regulated in a collective agreement?
A collective agreement contains provisions on wage and working conditions, but the actual content can vary between different sectors and industries. The collective agreement can regulate:
- Wages: Minimum wage rates, starting salary, salary tables, seniority ladders, and supplements
- Wage negotiations: Which terms and instruments apply to wage negotiations, negotiation rules
- Working hours: Weekly working hours, shift arrangements, flexitime, and rest periods
- Overtime: Which rates apply to overtime work
- Vacation and days off: Number of vacation days beyond the minimum in the Holidays Act
- Leave rights: Welfare leave and extended leave rights beyond the statutory minimum
- Pension and insurance: Benefits you are entitled to, beyond what the law requires
- Co-determination: Rules on how employees can influence decisions
Why are collective agreements important to you?
Collective agreements are more than just dry documents. They are the result of negotiations between the social partners and determine your salary, your working hours, and your job security. Collective agreements prevent arbitrary determination of your salary and arbitrary treatment of you as an employee.
Rights you get through a collective agreement
With a collective agreement, you often get better rights than what you are guaranteed by law. This applies to wages, working hours, and job security. For example, the collective agreement in the state sector regulates working hours to 37.5 hours per week instead of the 40 hours established by the Working Environment Act. Some collective agreements also have specific provisions for more vacation days than those provided by the Holidays Act.
Examples of benefits of a collective agreement:
- Higher salary than the statutory minimum wage (NB: only nine industries have a statutory minimum wage)
- Right to wage negotiations, and salary is negotiated on your behalf
- Better job protection
- Better pension schemes, e.g., AFP in the private sector
- Good support from the trade union in case of conflict or restructuring
- Right to strike
Collective agreement vs. employment contract
A collective agreement and an employment contract are two different things. All employees must have a written employment contract. An employment contract is an individual agreement between you and your employer, and there are statutory requirements for what it must contain. A collective agreement, on the other hand, is collective and applies to all employees covered by it. The employment contract cannot give you worse terms than the collective agreement, so if there is a collective agreement at the business where you work, your contract must comply with it.
How do I know which collective agreement I have?
Are you unsure which collective agreement you are covered by, or if you have one at all? The answer may depend on whether you are unionized or not.
Ask your trade union or employer
If you are a member of NTL, and NTL has a collective agreement with your employer, you follow one of our collective agreements. You can log in to "My pages" to find your collective agreement, or ask your union representative at work. Your manager or the HR department should also have an overview of which collective agreement applies at the workplace. You can find NTL's collective agreements here.
Which collective agreement do I have if I am not unionized?
A business that has entered into a collective agreement is obliged to practice the provisions of the collective agreement. This also applies to employees within the scope of the collective agreement who are not organized in a union. At workplaces that have more than one collective agreement, non-unionized employees usually follow the agreement that has the most members. Non-unionized employees who nevertheless receive wages and other benefits stipulated in the collective agreements are often called "free riders" and are seen as someone who exploits the rights that have been negotiated.
NTL has over 58,000 members, and when we negotiate on their behalf, it is a huge strength that we have as many members as possible behind us. The members are our most important bargaining chip. Therefore, it is important to join NTL and contribute to us becoming the largest and strongest so we can secure the best results.
What if I don't have a collective agreement?
If there is no collective agreement at your workplace, only the statutory minimum rules and what is stated in your employment contract apply. You are also in a weaker position in negotiations with your employer and have weaker protection in situations such as downsizing. If you don't have a collective agreement where you work, fortunately, you can demand one. First, you should talk to your colleagues. There are surely more of you who are interested in having a collective agreement, and it helps to be many. Join NTL and contact us so we can assist with the demand. NTL establishes many collective agreements on behalf of our members every year.
Summary and further help
Collective agreements are about security, fairness, and community in working life. They provide you as an employee with predictable and improved terms, and ensure that your rights are not dependent on individual negotiations and that you have a good relationship with your boss.
Important things to remember
- The collective agreement gives you better terms than the law alone.
- It is collective, meaning it applies to many or all employees.
- It is wise to know which agreement applies where you work, so you are aware of your rights.
- If your workplace does not have a collective agreement, you may still be able to demand one – contact NTL.
Where can you get more information?
- Ask the NTL union representative where you work
- Log in to My pages
- Read about NTL's collective agreements
- Check the employer's intranet or ask the HR department