A collective agreement, a collective agreement (TC) or a collective agreement (CBA) is a written collective agreement negotiated by collective bargaining for workers by one or more unions with the management of a company (or with an employer organization) that regulates the commercial conditions of workers in the workplace. These include regulating workers` wages, benefits and obligations, as well as the obligations and responsibilities of the employer, and often includes rules for a dispute resolution process. The Act is now enshrined in the Trade Union and Labour Relations (Consolidation) Act 1992 p.179, which provides that collective agreements are definitively considered non-binding in the United Kingdom. This presumption can be rebutted if the agreement is written and includes an express provision that it should be legally enforceable. Only one in three OECD workers has wages agreed upon through collective bargaining. The 36-member Organisation for Economic Co-operation and Development has become a strong supporter of collective bargaining to ensure that falling unemployment also leads to higher wages.  It is important to note that after the conclusion of a KBA, both the employer and the union are required to respect this agreement. Therefore, an employer should retain the assistance of a lawyer before participating in collective bargaining. The union can negotiate with a single employer (who usually represents a company`s shareholder) or with a group of companies, depending on the country, in order to reach an industry-wide agreement. A collective agreement functions as an employment contract between an employer and one or more unions.
Collective bargaining is conducted in negotiations between union representatives and employers (usually represented by management or, in some countries such as Austria, Sweden and the Netherlands, by an employers` organisation) on the conditions of employment of workers, such as wages, working time, working conditions, redress procedures and trade union rights and obligations. The parties often refer to the outcome of the collective agreement or collective agreement (AEC) negotiation. In Sweden, about 90% of employees are subject to collective agreements and 83% in the private sector (2017).   Collective agreements generally contain minimum wage provisions. Sweden does not have legislation on minimum wages or legislation extending collective agreements to disorganised employers. Unseated employers can sign replacement agreements directly with unions, but many do not.