Covering Agreement Betekenis

In the Netherlands, collective agreements are a means of organising work and a means of protecting workers from the unequal bargaining power of employers. In the post-war period in particular, the government strictly controlled the level of wages. Each collective agreement was normative in the sense that provisions that were both more favourable and less favourable were contra vires. This has changed a lot: collective agreements are now generally minimum rules. [80] However, this is based on practice, not law. If the social partners do not want employers to pay higher wages or bonuses than those provided for in the collective agreement, they can simply make the collective agreement absolutely binding. It is not uncommon for Dutch collective agreements to contain provisions such that derogations from this agreement are not allowed, unless this provision expressly provides for it[81], or even that derogations from this agreement are not allowed, even if they are more favourable to the worker. [82] Today, collective agreements often contain provisions that, both generally and on a case-by-case basis, only allow for more favourable provisions.[83] However, this always implies that the parties could have agreed on something else. [84] Case law on this subject is rare and inconclusive. [85] However, these developments have not reduced the role of collective agreements. These have even increased in scope and number. But what has changed is the character of collective agreements.

Not only do they leave more freedom to the individual, but they must also, in most cases, be supplemented by agreements at company level. Negotiations at company level are often left to works councils, which are gradually seen as strategic partners of trade unions in the protection of workers. The overall effect of these changes is a movement towards differentiation and fragmentation of working conditions within a given margin. The level of negotiations that has lost the most effectiveness is coordination at the national level. [37]. Collective agreements as such can only take effect once the application has been made: Wage Formation Act (Wet op de loonvorming) art. 4. In Finland, collective agreements are universal. This means that a collective agreement in a sector of activity becomes a universal legal minimum for everyone`s employment contract, whether unionized or not. For this condition to apply, half of the workers in this sector must be unionized and therefore support the agreement.