Collective Bargaining Agreements: Content and Process

Posted on Feb 23, 2025 in Law & Jurisprudence

Content of Collective Bargaining Agreements

(Important)

A) Regulatory Content (Conditions of Employment)

Parties can freely bargain, limited only by law. Negotiable items include:

  • Individual employment relations: Employment conditions (salaries, promotions, etc.).
  • Conditions of industrial relations: Guarantees for representatives, worker participation, etc.
  • Company economic situation.
  • Social action for workers (housing, childcare, etc.).

Non-transferable limits:

  • Must respect minimum rights conditions.
  • Must respect contractual obligations.
  • Must adhere to the principle of the most beneficial source of non-discrimination. No distinctions can be made.
  • Clauses seriously prejudicial to the interests of others are prohibited.

B) Obligational Content

This content ensures the effectiveness of the agreement by imposing duties and obligations on the contracting parties, including absolute peace clauses.

C) Delimiting Clauses

Article 85.2 refers to minimum delimiting clauses within an agreement, which are configuration standards. Specifically:

  • Determination of the parties involved (legitimacy).
  • Personal, functional, territorial, and temporal scope.
  • Form, conditions, and notice period for termination.
  • Obligation to appoint a joint committee and procedures to resolve discrepancies within that committee.
  • Supra-company agreements require a wage increase clause.

The Negotiation Process

Initiative and response by the promoter:

To initiate negotiation, standing in their respective field is required. The initial letter should specify:

  1. Legitimacy of the party promoting the negotiation.
  2. Scope of application.
  3. Subject matters.

A copy should be sent to the competent labor administration authority.

B) Duty to Negotiate by the Receiving Party

A party can only refuse to negotiate for reasons established by law or agreement, or if an agreement is not yet expired (Articles 84 and 84).

C) Constitution of the Regulatory Commission

Within one month from the receipt of the negotiation commencement notification, the parties must establish a timetable or negotiation plan. For collective agreements at the company level or lower, the number of representatives from each party must be less than 12. Without a legal test of proportionality, rates are usually determined by representativeness.

D) Obligation to Negotiate in Good Faith

The parties are obliged to make a sincere effort to reach an agreement (although obtaining an agreement is not mandatory, the attempt is). If this fails, labor authorities can intervene and impose sanctions.

E) Failure by the Parties

The law does not specify a course of action.

F) Adoption of Negotiating Agreements

Negotiating agreements require the affirmative vote of a majority of each of the two representations.

G) Breakdown of Negotiations

The ET does not indicate what to do, but according to Royal Decree, if no agreement is reached, parties may declare a strike or have a conflict of interest group.

H) Possible Mediation in Case of Disagreement

At any time during the negotiations, parties may agree to mediation by a mediator appointed by them. The decision is made by agreement within the committee.

I) Written Form of Agreement

The agreement is void if it is not in writing and signed by both parties.

J) Administrative Process Following the Adoption of a Convention

  1. Must be in writing and signed.
  2. Presented for registration with the competent labor authority within 15 days of signing.
  3. Referral of the convention to the SMAC (center or autonomic) for deposit.
  4. Dispatch of the agreement for publication in the Official Gazette within 10 days.

K) Challenges to the Collective Agreement

Challenge of trade: By the labor authority if they consider it illegal (in form and/or substance) or detrimental (real and potential, but not legal). The parties must delete or change the terms. There is no time limit in the ET, as it is considered upon registration.

Types of challenges:

  1. Generic or absolute: Only by groups, to be resolved in court, which can declare it null. These have general effectiveness.
  2. If a worker disagrees: If the judge decides that the clause is void, the effectiveness is only for that worker. Other workers must repeat the process for the same outcome.