A collective bargaining is an essential tool for improving working and pay conditions in a company, group of companies or an entire sector.

What is a collective bargaining agreement?

It is an agreement reached, after negotiation, between employee representatives and the employer(s) concerned. Collective agreements are an important instrument for defending employees’ interests, as they generally contain provisions that are more favorable than the law, particularly in terms of :

  • wages
  • bonuses (e.g. 13th month or holiday pay)
  • enhancements to wages
  • working hours
  • leave

Collective agreements can thus enable workers to benefit from wage increases through a wage scale that includes automatic promotions, extra-legal days off, flexible working hours, 13th month bonuses or even better-than-legal bonuses (for night work, Sundays or Saturdays, etc.).

It is also important to note that collective bargaining agreements are first and foremost an instrument for providing benefits on an equitable basis to all employees of a company or sector.

Some key facts about CBAs:

  • CBAs are valid for a minimum of 6 months and a maximum of 3 years (after which they are renewed or renegotiated).
  • A collective bargaining agreement must have the signatures of a nationally or sectorally representative trade union (the OGBL is both).
  • When negotiating a collective bargaining agreement, the OGBL and the staff delegation form a bargaining commission to represent employees throughout the negotiation process.
  • Before any major decision is made or a collective agreement is signed, the employees concerned are consulted to give their opinion.
  • While a collective agreement is in force, it cannot be modified unilaterally (= stability and guarantee of acquired rights).
  • Collective agreements reduce inequalities between workers.
  • CBAs ensure labor peace throughout the term of the contract.
  • The image of the company is enhanced by a collective bargaining agreement.
  • The existence of a collective bargaining agreement is a major advantage in the recruitment of new employees.