Second, negotiations can be a single company with several companies and workers in all these companies. This form is called multi-company bargaining, in which workers negotiate with the common employer on different unions. Collective bargaining usually takes place through a union. Workers pay relatively low dues to the union each month to become members. The working class, united, becomes a power to protect its interests from the exploitation of employers through the process of collective bargaining. In Scandinavia, there is no minimum wage. Instead, they are defined by collective bargaining. It sets a minimum wage in the Scandinavian countries of Denmark, Norway, Sweden and Finland. It should not be confused with a minimum wage that is universal and dictated by the government. However, new contracts can be written to resolve the issues of the previous contract. In addition, in solving everyday problems, they set precedents for handling similar problems in the future. Such precedents are almost as important as the contract in controlling working conditions. In short, collective bargaining is not an on-and-off relationship maintained in the cold store, unless new contracts are being designed.
The union can negotiate with a single employer (which usually represents the shareholders of a company) or, depending on the country, negotiate with a group of companies to reach a sectoral agreement. A collective agreement is a contract of employment between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a trade union and employers (usually represented by management or, in some countries such as Austria, Sweden and the Netherlands, by an employers` organisation) on workers` conditions of employment, such as wages, working hours, working conditions, complaint procedures and the rights and obligations of trade unions. The parties often refer to the outcome of negotiations as a collective agreement (CBA) or a comprehensive employment contract (CBA). To put it another way, inclusive negotiation implies that both parties take into account the views, needs, wishes, fears and concerns of others. As a result, both parties lose or win either around the same amount. For example, trade unions may commit to higher staff training. It may cost the company more, but it will benefit from increased productivity in the long run. In his own words: “Most of the collective bargaining (agreements) was at the company level, although in important textile centers such as Mumbai and Ahmedabad, sectoral agreements were (fair). Such agreements are also found in the plantation industry of the South, Assam and the coal industry.
That said, in new sectors – chemicals, oil, oil refining and distribution, aluminium and electrical equipment, car repair – dispute settlement through voluntary agreements has become common in recent years. In ports and wharves, collective agreements play a role in the various centres. . . .