A collective agreement sets minimum terms and conditions of employment, that apply to every worker, covered by the collective agreement. A collective agreement is a good way for employees to jointly agree on pay, working hours and other terms and conditions of interest to both parties. By negotiating a collective agreement, workers can take part in determining the terms and conditions of their working lives. It is more effective to stand up for your interests together.
Regulated by the Collective Agreements Act, which can be consulted at. riigiteataja.ee
Conclusion of a collective agreement
Collective bargaining is the right of the trade union (or, if there are no trade union members at the workplace, the employees' representative). Collective bargaining can take place at company or institution level, at sector level and at national level. For example, sectoral collective agreements have been concluded in public transport sector and in healthcare sector. A national level collective agreement sets a national minimum wage. Sectoral and national collective agreements can only be concluded between representative trade union(s) and employers organisation(s).
Experts are entitled to be involved in the negotiations. Trade union members are in a privileged position here, as they can get the necessary help from their unions and the Confederation of Trade Unions. The party interested in collective bargaining will propose to the other party to open negotiations and will also submit a draft agreement. Negotiations must start within 7 days of receipt of the notification. In the case of negotiations during working hours, the representatives of the workers shall be released from their normal work, with the agreement of the parties, and shall retain their average remuneration for this period.
Collective bargaining agreements
In the collective agreement anything that is in the interest of the parties can be agreed upon. In most cases, the usual subjects of negotiations are working time, rest periods and pay conditions. In Estonia, too, the role of collective agreements has increased considerably since the adoption of the new Employment Contracts Act, because laws no longer regulate everything in detail. Although individual agreements try to fill this gap, it is better for both the employer and the employee to agree collectively on certain issues. There are fewer things for the employer to write into the contract and it is easier for employees to conclude a contract collectively and to get advice from their unions.
Scope of the collective agreement
The collective agreement applies to employers and employees who belong to organisations that have signed a collective agreement. In addition, the collective agreement can be extended to all workers in the sector concerned, regardless of whether they belong to a trade union or an employers' association. An agreement concluded within an enterprise is normally applied by the employer to all employees, in particular with regard to working time, rest periods and pay, on the basis of the requirement of equal treatment of employees. However, various other agreements are possible which would benefit the signatory union members.
Entry into force, validity and termination of the collective agreement
The collective agreement will enter into force on the day it is signed or the day agreed. It is possible to agree different dates for the entry into force of some of the clauses, including retroactive application of the rates of pay, or a date to be fixed.
Normally, a collective agreement is valid for 1 year, even if the duration is not agreed. It is also possible to agree a longer period. Since it would be good to change certain conditions every year, it is not reasonable to have a collective agreement for too long. A collective agreement expires when a new agreement of the same nature is concluded. If there is no new agreement when the agreement expires, the parties are bound to comply with the terms of the collective agreement, except for the obligation to keep a truce.
Notification of collective agreement
For information on collective agreements, contact the trade union or the workers' representative. The employer has a duty to make the collective agreement known to all new employees and, when a new collective agreement is signed, to all employees. The text of the collective agreement should always be available to all employees. The collective agreements concluded by the various trade unions and their federations can be consulted on their websites. To find collective agreements in your company or institution, contact your shop steward.
