Industry-specific collective agreements include rules and employment terms and conditions that correspond to the needs of specific industries. Collective agreements therefore provide robust support regardless of the number of employees businesses have or which sector they operate.
Collective agreements create clear rules for employers and employees. They make it easy to do the right thing. Through industry-adapted terms and conditions, employers have a set of regulations adapted to their specific business, rather than the laws that otherwise apply regardless of individual business needs.
Collective agreements can also increase flexibility and allow solutions and deviations that are not possible under otherwise applicable legislation. During the validity period of such agreements, i.e., the time that a collective agreement applies, there is also a so-called peace obligation. This means that employees cannot go on strike to achieve better conditions. If employees do take industrial action under such circumstances, they could face dismissal.
Collective agreements make life easier for employers
The Swedish labour market model involves employer organisations/employers and trade unions regulating employment conditions and wages in collective agreements. This creates stability in the labour market and protects companies’ competitiveness.
Collective agreements also include occupational pension and insurance – a package solution – which provides cost-effective, advantageous supplementary protection in addition to standard pensions and statutory insurance. Providing employees security with throughout life increases makes employers more attractive.
If you would like to know more about the benefits of collective agreements for your specific industry, contact one of our member organisations for more information.