Salary and negotiations
Members and union representatives sit together and engaged during a meeting about the collective agreement.
Guide

What is a collective agreement?

Are you wondering what a collective agreement is, and why it is important to you? Here you will find everything you need to know about collective agreements, including links to NITO's agreements and advice on what to do if you do not have a collective agreement at your workplace.

This is a collective agreement

  • A collective agreement is a written agreement between a trade union and an employer or employers' organisation.
  • It lays down rules for wages, working hours, pensions and other working conditions.
  • Collective agreements give employees greater co-determination in decisions that affect their working day.

Why are collective agreements important?

A collective agreement ensures fair and predictable working conditions. Among other things, it provides: 

  • Salary and salary development – Ensures competitive pay and the right to negotiate. 
  • Working hours and overtime – Clear rules for working hours, rest periods and overtime pay. 
  • Pensions and insurance – Financial security both in and after working life. 
  • Leave of absence and welfare schemes – Rights to holiday, sickness benefit and parental leave. 
  • Co-determination – Employees are given a voice in important decisions in the workplace. 
  • Cooperation – Dialogue between the parties lowers the level of conflict. 

Who are the parties to a collective agreement? 

  • Trade unions – Trade unions that negotiate on behalf of their members, such as NITO for engineers and technologists. 
  • Employers – Individual companies or employers' organisations, such as Spekter, KS, Virke or NHO, that represent the employer's interests. 

The role of union representatives in the collective agreement provides co-determination 

Union representatives play a key role in ensuring that the collective agreement is followed and further developed. They represent the employees in negotiations, provide support in conflict situations and ensure a good dialogue with the employer to comply with the provisions of the agreement.

We call this co-determination. In this way, union representatives help influence decisions concerning the working environment, reorganisation and development of the business. 

Read about why co-determination creates better jobs

Illustration: two men build a staircase with large building blocks. Illustrates the union representatives can build themselves up through co-determination.

Collective agreements have different parts

There are different collective agreements depending on which industry you work in – and which trade union you are a member of. Collective agreements consist of several parts: 

  1. The main agreement – Sets the framework for cooperation between the employer and the trade unions, including the right to co-determination and how disputes are to be resolved. 
  2. The collective agreement/basic collective agreement – Contains rules for wages, working hours, overtime, leave, pensions and insurance.  
  3. Special agreements – Agreements that cover specific conditions, such as on-call arrangements or competence development. These can be both central and local.  

NITO, collective agreements and co-determination 

NITO works actively to ensure good collective agreements for engineers and technologists. We negotiate regularly to strengthen members' rights, ensure safe working conditions and increase co-determination in the workplace. 

 

How to check if you have a collective agreement?

As a NITO member, you can check which collective agreement applies where you work on My page.

What do you do if you do not have a collective agreement? 

  • If the company is a member of an employers' organisation: NITO can help you activate the collective agreement if it is not already in force.  
  • If the company is not a member of an employers' organisation: NITO's company group can agree with the employer on a direct agreement - a local collective agreement that applies to you. 

Frequently asked questions about collective agreements

Here you will find answers to the most common questions about collective agreements, their significance and how they affect your working life – from basic definitions to practical advice on your rights and NITO's role.
What is a collective agreement and why is it important to me as an employee?

A collective agreement is a written agreement between a trade union (e.g. NITO) and an employer or employers' organisation (e.g. NHO). It stipulates rules for wages, working hours, pensions and other working conditions. Collective agreements are important because they give you as an employee greater co-determination, predictability and security in working life. Collective agreements ensure fair conditions that are often better than the minimum requirements of the law.

What types of collective agreements exist, and what is the difference between the main agreement and the collective agreement?

There are different types of collective agreements depending on the industry and trade union. They often consist of several parts: The main agreement sets the framework for the cooperation between the employer and trade unions, including the right of co-determination and dispute resolution. The collective agreement (or the central collective agreement/main collective agreement) contains the specific rules for wages, working hours, holidays, pensions and insurance. In addition, there are special agreements that cover specific local conditions, such as on-call arrangements or skills development.

What is the difference between a collective agreement and a basic collective agreement?

The terms "collective agreement" and "basic collective agreement" are often used for the same type of agreement: a central collective agreement that regulates pay and working conditions for a larger group of employees.

"Collective agreement" is a common term in the private sector, while "basic collective agreement" is more common in the public sector (central and local government).

In practice, both are designations of the most important collective agreement that stipulates the general terms and conditions for employees within a given area, and they are often supplemented by local special agreements.

What is the role of union representatives in connection with collective agreements?

Union representatives represent the employees in negotiations and contribute to a good dialogue with the employer. Through union representatives, employees can influence decisions concerning working conditions, reorganisation and the development of the business.

Union representatives play a crucial role in ensuring that the collective agreement is followed and further developed.

What are the advantages of being organised in a trade union like NITO when it comes to collective agreements?

Being organised in a trade union such as NITO gives you good collective agreements with better terms than what the members would have received individually. In this way, we strengthen our members' rights, ensure safe working conditions and increase co-determination. As a member, you also get access to legal assistance, advice and support in matters related to your collective agreement and working conditions in general. This gives you security and a safety net in working life.

Salary and working conditions - A to Z

Do you have any questions about salary and working conditions? Here you will find an alphabetical overview of all the relevant pages:

Salary and working conditions - A to Z

Illustration of a woman working at a laptop, with other figures in the background, symbolises an overview of pay and working conditions in a digitalised working day.
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