Collective bargaining is common in Scandinavia, which they use rather than minimum wages to set a basic wage for workers. Therefore, instead of having a generalized minimum wage, employee unions agree on a wage structure.  Schulten, T. (2013), “Current Wage and Wage Trends in Europe 2001-2010,” Hans-B-ckler-Stiftung Policy Paper. In the United States, the National Labor Relations Act (1935) covers most collective agreements in the private sector. The Act makes it illegal for employers to discriminate, spy, harass or terminate workers because of their union membership or to retaliate for organizing campaigns or other “concerted activities,” creating business unions or refusing to engage in collective bargaining with the union that represents their employees. It is also illegal to require any worker to join a union as a condition of employment.  Trade unions are also able to ensure safe working conditions and adequate remuneration for their work. Workers have the right to choose their representative for collective bargaining.  In order to facilitate real participation in the negotiations, workers` representatives should be allowed to prepare for the negotiations.   Peetz, D. and E. Rasmussen (2018), “Awards and collective bargaining in Australia and New Zealand,” mimeo.
Suppose you sit on the collective agreements committee, which discusses collective bargaining as representatives of employers. What are some points that you will use to defend employers, why a wage increase above the rate of inflation should be refused, because it harms the economy. In the chapter on industrial relations, the ILO-MNE statement clarifies the importance of negotiations between representatives of the company`s management and workers` representatives on the regulation of wages and conditions of employment through collective agreements: “Workers employed in multinational enterprises should have the right to have organizations representative of their choice recognized for collective bargaining purposes. , in accordance with national laws and debates.”  (i) There is a strong representative union in the sector that believes in constitutional means of dispute resolution. The status of the negotiations: it defines the unit in which the parties negotiate and can relate to the company, the sector or the country. Sectoral or national agreements can be expected to reduce wage inequalities in relation to decentralised schemes by reducing pay gaps not only between workers in the same company, but also between workers in different enterprises and, in the case of national negotiations, in different sectors.