Economics/Business

Definition of collective bargaining/Who is entitled/types/Working

What is collective bargaining?

The word “dissident” means conflict, disagreement or disagreement. In the corporate context, it is a disagreement that occurs between employer and employee or between company and union in relation to various benefits , such as meal allowance, daycare allowance, health plan, maternity leave, overtime, floor and salary readjustment. Definition of collective bargaining

Thus, we can understand that the collective bargaining agreements are related to benefits that are determined by collective agreements and conventions, and not by CLT rules.

Furthermore, this type of action can have an individual or collective nature . Therefore, it can either be caused by a conflict with a certain employee or by an entire class of professionals.

The collective bargaining is governed by articles 643 and 763 of the CLT and by article 114 of the Federal Constitution and can be resolved in court, through the Labor Court or by agreement between the parties.

As most of the collective bargaining agreements are related to salary readjustments, the word ended up becoming a synonym for salary readjustments in business jargon, however, it is not limited to that.

In this case, processes are carried out to give more balance to the relationship between employee and employer , going far beyond salary adjustment issues.

That’s because they allow the creation of new rights and regulations to favor a better work dynamic between the parties. 

Who is entitled to the collective bargaining agreement?

Both the company and the employee or the union can appeal to the Labor Court for a collective bargaining agreement.

This type of action, however, should only be carried out when there is no possibility of an agreement between the parties. In these cases, the resolution of the conflict will depend on the opening of a labor process. Definition of collective bargaining

Collective bargaining, especially those related to salary readjustments, are rights of all workers, regardless of their professional category.

However, professionals who started their activities in the month of the agreement date are not entitled to receive the adjustment in that year.

In general, the collective bargaining agreement is defined according to the company’s operating segment and the number of employees. After definition, the company must comply with it immediately.

What are the types of collective bargaining?

The collective bargaining agreements can be classified into different types. Therefore, it is important for the HR professional to know the different models and know how to make the calculations for each one of them. Follow up!

individual agreement

Individual bargaining occurs when the employee files an action against the employer in the Labor Court.

The process can occur for several reasons, such as equalization and/or salary readjustment, collection of severance pay related to overtime , FGTS or 13th salary.

Thus, a labor lawsuit is filed against the organization and the case is judged by the Labor Court with an unlimited sentence. Definition of collective bargaining

Although individual bargaining is a direct action between employee and employer and has particular interests, it should be avoided and handled with care by HR.

This is because the process can set a precedent for similar complaints from other employees of the company. 

Collective bargaining

Collective bargaining, in turn, involves an entire professional category and is usually perpetrated by employers and labor unions . However, there are cases where actions can be self-organized.

In this type of action, the Labor Court interferes in the relations between employer and employees, representing interests of a whole class.

The advantage of this agreement model is a collective bargaining that can be beneficial to everyone. When the union manages to reach an agreement with the businessmen, collective agreements are created.

These agreements have a fixed term and are usually in force for a period of 1 to 2 years.

Collective bargaining can be divided into two groups, those of a legal nature and those of an economic nature. The first are those that reinterpret existing legal norms and seek to make their application fairer for the parties. Definition of collective bargaining

On the other hand, those of an economic nature are agreements that create, alter or extinguish labor-related norms.

In addition, there are collective bargaining models:

  • originating: which involves the establishment of unprecedented standards;
  • review: which reassess collective work norms and conditions;
  • declaration: resulting from strike stoppages.

Wage bargaining

Finally, let’s set aside a topic to explain a little more about the wage bargaining. This is the most frequent type of bargaining that Human Resources professionals have to deal with.

According to art. 611 of the CLT , every employee with a formal contract is entitled to an annual salary adjustment, which must be agreed between the company and the union.

The collective bargaining agreement is not a wage increase , it was created to correct wages based on inflation for a given year. 

Thus, inflation is calculated on the value of products in the country, such as food and fuel, and an adjustment percentage is agreed so that employees maintain their purchasing power.

Currently, the word bargaining has been used to characterize any wage adjustment process, even in cases where it is achieved through agreements, without the involvement of justice.

But when there is no agreement, the representatives are responsible for directing the claims to the TRT (Regional Labor Court). After that, the judges made an order, instructing and assigning hearings. Definition of collective bargaining

Then, the collective bargaining process begins.

How does the collective bargaining work?

In order to understand the agreement more clearly, we also need to understand what the base date is . Collective agreements and conventions have a period of validity that cannot exceed a period of two years.

In most cases, trading is annual.

Thus, we can say that the base date corresponds to the term of validity of agreements between employees and employers . However, negotiations start months before, so that the agreement can be signed on time.

Many professionals understand the collective bargaining agreement as the time when unions negotiate salary increases, but this is a mistake.

The collective bargaining agreement is a complex of rules that cover negotiations for different working conditions , such as the minimum wage, meal vouchers, overtime increases, vacations and termination .

First, the collective bargaining agreement is negotiated in the unions and, if there is no consensus, it is discussed in court in accordance with state laws. In such cases, the judge will act as a manager to resolve the conflict. 

 

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