Collective bargaining agreement: what is it and how does it work?

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Collective bargaining agreement: what is it and how does it work?

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If you have been in the formal job market for some time, it is likely that you have come across the term ‘collective labor agreement’ (CCT). This is an agreement between the employer and employee unions.

In addition to the rights and duties contained in the Consolidation of Labor Laws (CLT) it is common for special features to exist for certain categories.

These differentials are defined in common agreement between the employers ‘union and the workers’ union.

As the collective bargaining agreement changes or complements the CLT rules, it is essential that everyone knows the details of their working class to avoid problems with justice, or disagreements between the worker and the employing company.

To better understand how this convention works, we have prepared an article with more details about the agreement. You will know:

  • What is a collective labor agreement ?;
  • What is the collective labor agreement for?
  • Why was the collective bargaining agreement created ?;
  • Collective agreement and collective agreement: what is the difference ?;
  • Consultation: collective work agreement for each area.

So, come on!

What is a collective labor agreement?

First, it is important to know that there are two types of unions:

  • Employer: aimed at protecting employers’ interests.
  • Labor: defends workers’ rights.

Unions are like an association, which brings together people from the same profession or area of ​​work, such as bankers, journalists, nurses, among others.

The “collective bargaining mediator” refers to organizations that have an obligation to defend and organize interests (of workers or employers), in four points of view:

  • Economic;
  • Professional;
  • Social;
  • Political.

Thus, the collective bargaining agreement is an agreement between the employers ‘union and the workers’ union. It defines some different rules for certain categories.

Normally, the workers ‘union claims improvements for the class, through negotiations with the employers’ union. Learn more about the employers’ union in our article on the topic, clicking here.

This negotiation usually takes place annually in order to update market conditions, such as the percentage of salary readjustments, so it cannot exceed the two-year period.

At this meeting, representatives of the two unions must be present in order to agree on the items discussed. The convention is provided for in the article 611 of the CLT.

Art. 611. Collective Bargaining Agreement is the normative agreement, whereby two or more unions representing economic and professional categories stipulate working conditions applicable, within the scope of the respective representations, to individual labor relations.

What is the collective labor agreement for?

Some categories have or need different working conditions, for example, reduced working hours or some type of benefit, such as life insurance.

It is the collective labor agreement that also determines the minimum wage and the duties and rights of each worker and employer. Other examples of points that can be defined by the convention are:

  • meal ticket;
  • annual leave;
  • home office or teleworking;
  • overtime;
  • life insurance;
  • hygiene conditions at work;
  • guarantee of employment for a certain time.

Why was the collective bargaining agreement created?

The approval of the Consolidation of Labor Laws (CLT) in 1943, which regulated labor relations between employees and employers, raised a question about the particularities of each category.

There was an understanding that it would not be possible, with just one legislation, to cover the needs of all professions and occupations. From there, the unions were created and then the collective agreement.

The Ministry of Labor and the collective agreement are found in article 614 of the CLT, which reiterates the importance of registering agreements between unions. Collective agreement signed and registered means that that category will have those rights and duties, in addition to what is stated in the general legislation.

Therefore, CLT determines the rules applied to all workers, such as 13th salary and paid vacation, deposit amount of FGTS, minimum wage, 120-day maternity leave, paternity leave, etc.

The collective labor agreement is enough to complement the characteristics of each area of ​​activity, but it cannot change important items of workers’ rights, such as those mentioned above.

Collective agreement and collective agreement: what is the difference?

In addition to the collective bargaining agreement, there is also the collective labor agreement (ACT). In this case, labor unions have combined with specific companies, with extra clauses in addition to CLT and CCT.

Collective bargaining and collective bargaining differ only on this point. The convention is valid for all employing companies, while the ACT refers to only one group of companies.

The collective bargaining agreement is provided for in paragraph 1, article 611, of the Consolidation of Labor Laws (CLT).

  • 1st – Unions representing professional categories are allowed to enter into Collective Agreements with one or more companies in the corresponding economic category, which stipulate working conditions, applicable within the scope of the company or in the respective employment relationships.

It is worth mentioning that the collective labor agreement is stronger in the hierarchy and, therefore, prevails, unless the collective agreement brings more benefits to the worker.

Consultation collective bargaining agreement

Many categories have collective agreements, however, it is not possible to find in one place all the agreements signed between the labor and employers’ unions.

Therefore, to see if your area of ​​expertise has it, it is recommended to look at the union responsible for your profession.

As we can see throughout the text, there are many differences between the collective bargaining agreement, the collective bargaining agreement and the Consolidation of Labor Laws.

The creation of all of them, however, came to guarantee a fairer relationship between professionals and companies, since the worker is considered the weakest side in the agreement.

Both the professional and the employer must pay attention to the characteristics of each category.

Since, failure to comply with the rules provided for in any of these agreements can lead to complications in court, from the payment of fines to the indemnity of the worker.

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