Horizontal and Vertical Collective Agreements The Collective Relations Act distinguishes horizontal collective agreements, i.e. professional agreements that cover a group of workers identified for a particular occupation or job (. B, for example, an agreement for pilots) and vertical collective agreements, that is, . Sectoral agreements governing workers` industrial and labour relations, set for all employees in a particular sector (. B for example, an agreement for the textile industry or the banking sector). In Article 12, the law gives priority to vertical agreements which stipulate that they enter into force after publication and denounce horizontal agreements, even if the minimum duration of these agreements is not respected. This priority assumes, of course, that an organization that has signed the horizontal contract that has been terminated is also a party to the new vertical agreement, because only if this is the case will the relevant principles in terms of the right to negotiate and the scope of collective agreements can be respected. This is generally the case, as many vertical agreements are signed by a large number of primary unions, which may include trade unions. To see conflict between collective agreements . Can your business be covered in different ways by a collective agreement? Pro`s collective agreement guarantees a level playing field of contractual relationship and fair compensation. 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. [1] The collective agreement binds signed union members and employers who are members of an employer union that signed the agreement. These agreements are considered normally binding. Collective agreements are agreements negotiated by unions and employers. Collective agreements provide certain conditions of employment for a group of workers called “bargaining unit” and represented by a union. The collective agreement defines the rights of workers and the union. Therefore, any union relationship generally results in a collective agreement.

In rare cases where a collective agreement cannot be negotiated, the union will cease to represent the workers, either by renouncing their rights or because the workers are terminating the union`s representation rights.