In Sweden, the scope of collective agreements is very high, although there are no legal mechanisms to extend agreements to entire industrial sectors. In 2018, 83% of all private sector employees were subject to collective agreements, 100% of public sector employees and 90% in total (compared to the overall labour market).  This reflects the predominance of self-regulation (regulation by the labour market parties themselves) over state regulation in Swedish industrial relations.  Employers must provide the union with certain information in support of the bargaining process. B, such as the company`s salary and performance structure or information on its profits, assets and commitments. The right to collective bargaining is recognized by international human rights conventions. Article 23 of the Universal Declaration of Human Rights describes the ability to organize fundamental human rights unions.  Point 2 (a) of the International Labour Organization`s statement on fundamental principles and rights in the workplace defines “freedom of association and effective recognition of the right to collective bargaining” as an essential worker`s right.  The 1948 Convention on Freedom of Association and the Protection of the Right to Organization (C087) and several other conventions protect collective bargaining in particular by creating international labour standards that deter countries from violating workers` right to co-association and collective bargaining.
 In addition, there are generally binding collective agreements. These important agreements also bind disorganized employers and workers who work for them. The labour and employment legislation adopted by the Finnish parliament lays the foundations for collective agreements. As minimum wages are not set by Finnish labour and employment legislation, workers` wages are based on collective agreements negotiated by trade unions. In a workplace where the majority of workers voted in favour of union representation, a committee of workers and union representatives negotiates with management a contract for wages, hours, benefits and other conditions of employment, such as. B protection against termination of employment without physical cause. Individual negotiations are prohibited. Once the Workers` Committee and management have agreed on a contract, it is put to a vote by all workers in the workplace.
If the contract is approved, it is normally in effect for a fixed term of one year and, when that term expires, it is renegotiated between staff and management. Sometimes there are disputes about the union contract; This occurs particularly in the case of workers dismissed without legitimate cause on union employment. These then go to an arbitration procedure that is akin to an informal trial; a neutral arbitrator then decides whether the information or any other offence is still in place and, if so, orders that it be corrected. The collective agreement binds signed union members and employers who are members of an employer union that signed the agreement. These agreements are considered normally binding. When collective bargaining results in an agreement, such as an increase in wages or a change in working conditions, this is called a “collective agreement.”