Do you know how the working conditions that affect you and other workers are set? How are your wages, working hours and benefits determined? The answer lies in a key piece of legislation in the world of work that you’ve no doubt heard mentioned: the collective agreement.
In this post, we’ll explain what collective agreements, the different types and their importance in the business world. Would you like to find out more about this topic? Read on!
First, let’s look at what a collective agreement is
According to the Ministry of Labour and the Social Economy, the collective agreement It is an agreement signed by representatives of workers and employers. Its aim is to establish working conditions and productivity levels in accordance with the provisions of Title III of the Workers’ Statute, published in the Royal Legislative Decree 2/2015, 23 October.
In short, the collective agreement sets out the terms and conditions of employment and working conditions for employees such as wages, working hours, benefits, working conditions and procedures for resolving labour disputes. These agreements are legally binding and they usually have a fixed term, after which they may be renegotiated.
As for the content of the collective agreement, must include at least the following:
- Negotiating parties of the agreement.
- It must be specified to whom the agreement applies (staff), in what situations or roles (functional), where (territorial) and for how long (temporary).
- Steps to follow to resolve disputes which may arise in the application of the working conditions.
- How and when can you to terminate the agreement before it expires.
- A committee comprising representatives from both sides to interpret matters laid down in the law and other matters assigned to it, as well as to establish procedures and time limits for action. It must also include the referral of disputes to non-judicial systems conflict resolution.
So, what does the collective agreement cover?
At this point, it is important to note that the collective agreements These may vary depending on the sector, the company and the geographical area. Below, we summarise some general aspects that are usually included in these agreements:
- Salaries and benefits: the setting of minimum wages or pay scales; incentives, bonuses and pay supplements; overtime and compensation for overtime.
- Working hours: length of the working day (daily or weekly hours), working hours and breaks, and rules on shifts and shift rotation.
- Holidays and breaks: allocation of annual leave days, and sick leave, maternity/paternity leave and other paid leave.
- Working conditions: health and safety at work, personal protective equipment and regulations governing teleworking or remote working.
- Promotion and training: opportunities for internal promotion and professional development.
- Trade union rights: recognition and roles of trade union representatives, as well as consultation and negotiation procedures.
- Termination of the contract: grounds for and procedures relating to dismissal, severance pay and notice periods.
- Equality and non-discrimination: regulations to prevent discrimination on any grounds.
- Other points: job classification, policies on work-life balance, and social benefits, such as health insurance or pensions.
Four types of collective agreement
The types of collective agreements These may vary depending on the sector and specific circumstances. Here are the details of four types of collective agreements. Let’s get started!
Sector-wide collective agreements
This agreement, as its name suggests, applies to a specific economic sector, such as construction, the hospitality sector and the automotive industry. These are negotiated by trade unions and representative employers’ organisations in that sector and set out the working conditions for all companies and workers within that sector.
They are divided into:
- Regional: applicable in the autonomous communities.
- Provincial: valid in the provinces.
- Inter-provincial: span several provinces.
Collective agreements covering a specific geographical area
They apply to a specific geographical area, such as a province or an autonomous region. They may cover various economic sectors and are negotiated by trade unions and employers’ organisations which operate in that area.
Company-level collective agreements
This refers to those who are remembered in a a particular company and its employees. These agreements are negotiated between the company management and staff representatives, whether it be a trade union or a works council.
These may include:
- National: They cover the whole country and their content is published in the Official State Gazette.
- Regional: are valid in autonomous communities and cover a business sector.
- Venues: applicable at local or regional level.
Statutory collective agreement
It is a specific type of employment contract that applies to public-sector employees, and it complies with the requirements of the Workers’ Statute. They regulate the working conditions of public-sector employees, including aspects such as pay, working hours, annual leave, leave of absence, career progression, performance appraisals and other employment rights and obligations.
Statutory agreements are the result of negotiations between workers’ representatives and the public administration relevant.
The importance of the collective agreement
You’ve no doubt already come to the conclusion that collective agreements are essential in the workplace. After all, they define crucial aspects such as wages, working hours, holidays and benefits, providing stability and certainty for workers.
Furthermore, they promote a balance in the labour relations by enabling employees to bargain collectively with employers, which helps to prevent abuse and ensures fair treatment. They also serve as key tools for to resolve labour disputes peacefully and to promote the continuous improvement of working conditions and the working environment.
And do you think that the collective agreement Is it important for workers? In Educa.Pro We discussed this and other topics, such as the increase in the minimum wage or the contribution to theSocial Security for students on work placements. Follow us so you don’t miss a thing!
