Why We Use Collective Agreement

As a general rule, the negotiation of the first collective agreement lasts up to six months. Negotiations on renewal agreements will also take a few months, but the old agreement will remain in force during negotiations. The main services provided by unions to members are negotiations and representations. Collective bargaining provides unions with a way to defend and improve the well-being of members through better, safer and healthier working conditions. Maimunah (2003: 163) explains that collective bargaining in Malaysia focuses mainly on economic issues. It could be extended to a wide range of other areas related to worker well-being, particularly in the areas of safety and productivity systems. The results of collective bargaining provide a measure of job security, status, self-esteem, better working conditions and better control of their working lives (Wu 2006: 145). Can your business be covered in different ways by a collective agreement? Although the collective agreement itself is not applicable, many of the negotiated terms relate to wages, conditions, leave, pensions, etc. These conditions are included in a worker`s employment contract (whether the worker is unionized or not); and the employment contract is of course applicable. If the new conditions are not acceptable to individuals, they may be contrary to their employer; but if the majority of workers have agreed, the company will be able to dismiss the complainants, usually unpunished. Nevertheless, the components and mechanism of the geographic labour market correspond to those of the non-spatial model. The labour supply offers their availability for work and skills and targets high wages, job security and career opportunities.

The demand for labour, i.e. businessmen, entrepreneurs, public bodies and representatives of all kinds of associations, aspires to this willingness to work and specific qualifications and strives, for cost reasons, to pay low wages in return, while promising job security and career opportunities to some employees. This research process is accompanied, on both sides, by organizations that, through collective agreements, have created framework conditions that significantly shorten the negotiation process.