Some aspects of employment relationships can be regulated by collective bargaining agreements. Specifically those at a higher level, concluded between employers’ associations and sector trade unions, which are binding for all employers active in the relevant economic sector. Collective bargaining agreements of a higher level are published on the website of the Czech Ministry of Labor and Social Affairs.
What are Collective Bargaining's?
Collective bargaining refers to all negotiations between trade unions and employers for determining working conditions and terms of employment, including issues related to pay and working time, and for regulating relations between employers and workers.
Wage levels in Europe are tied closely to whether workers are covered by collective bargaining. Collective bargaining in the Czech Republic can take place at both industry level – where the agreements reached are known as “higher level collective agreements” (KSVS) – and at company level, although most companies are not covered by any collective bargaining. At least 45% of employees in the Czech Republic are known to be covered by collective bargaining, most through company level negotiations. Industry level agreements cover some industries, and they can again be extended more widely.
Who negotiates and when?
Negotiations take place between the unions, which can be workplace union organizations as well as unions nationally, and employers, which similarly can be either individual employers or employers’ associations. Legislation which stated that an employer could negotiate with the largest union at a workplace, where there were several and they could not agree, was ruled unconstitutional by the constitutional court in March 2008.
Trade unions and managements in the Czech Republic are concluding a growing number of collective agreements, including commitments to overall wage rises. However, bonuses and other benefits such as holiday entitlement show less progress.
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