Negotiations with trade unions
Trade unions are associations of employees established to promote and defend the labour, social and economic interests of employees (workers). They do so primarily by collective negotiating with the employer and exercising the right to information or by discussing certain labour-law issues granted to trade unions by law. Trade organisations are legal entities with their own legal personality and can act independently in labour relations. The employer is obliged to cooperate and negotiate with the trade union active in the employer’s organisation and, where appropriate, inform the union of the facts listed in the Labour Code; more trade unions may operate in the employer’s organisation. Close cooperation between the employer and the trade union is highly desirable, especially in view of the trade union’s key task, which is to protect the rights of employees and defend and promote their legitimate interests.
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Establishment of the trade union authorisation
A trade union is active in the employer’s organisation and has the right to act if the following two conditions are met:
- it is authorised to do so under its statutes
- at least three of its members are employed by the employer (i.e. do not work under agreements on work performed outside employment)
A trade union or its subsidiary organisation may only bargain collectively and enter into collective agreements under the above conditions if it is authorised to do so by its statutes.
The trade union starts to operate in the employer’s organisation on the day following the day on which it notifies the employer that it meets the above conditions (the notification includes documentation substantiating the information communicated) and, from that moment, the employer must fulfil the obligations set out in the Labour Code in relation to trade unions. The trade union therefore acquires a number of rights in relation to the employer, in particular:
- the right to conclude a collective agreement
- the right to negotiate and be informed, including the right to confidential information
- the right to act for employees in labour relations
- the right to monitor the occupational safety and health status of individual employers
- right to establish conditions for the proper performance of activities at the employer’s expense
If the trade union ceases to meet the above conditions for its establishment, it is obliged to notify the employer without undue delay.
Negotiations on behalf of the trade union
The body competent under the statutes acts for the trade union. Its members are those who will represent the trade union in collective bargaining or other communication with the employer and provide proof of their powers of representation. Since 1 January 2018, however, this is non-public information as the data on the members of bodies can be accessed only on the basis of a written request from the trade union.
Collective bargaining
Collective bargaining is one of the most important activities of trade unions. It is one of the methods of mutual communication between employers and trade unions operating in the employers’ organisations used to regulate the rights of employees in labour relations (especially in terms of wages and other working conditions), the desired result of which is the conclusion of a collective agreement. The trade union plays an irreplaceable role in collective bargaining as only the trade union can conclude a collective agreement on behalf of employees. The procedure for collective bargaining, concluding collective agreements, resolving disputes between the participants and the procedure for strikes and lockouts are governed by Act No. 2/1991 Sb., on collective bargaining, as amended.
In practice, as part of collective bargaining, one of the parties usually submits a written proposal for the conclusion of a collective agreement and then partial negotiations, i.e. personal meetings of the parties’ representatives, are held in response. The content, frequency, time and other aspects of these meetings depend on the will of the parties, as well as on the practices of the particular employer or the particular industry. If the collective bargaining is successful, the parties draft a collective agreement, agree on it and then sign it on the same sheet, thereby concluding the collective agreement. The parties to the collective agreement are then obliged to inform the employees of the content of the collective agreement within 15 days of its conclusion as the collective agreement applies to all employees regardless of their union membership.
Conclusion
The choice of an appropriate strategy and precise knowledge of the legislation are very important aspects for the overall outcome of collective bargaining. One of the common mistakes made by parties to a collective agreement is, for example, that the negotiated terms discriminate against a certain group of employees due to the selected settings. At this point, it is very useful to have a person with legal expertise by your side who can point out these problematic aspects of the collective agreement and suggest other, more legally appropriate solutions. With a good negotiation strategy, you can not only achieve acceptable results in the negotiation itself but also maintain the mutual relations between the negotiating parties and the level of their communication. We have years of experience in representing employers in negotiations with trade unions, especially in relation to larger corporations, so do not hesitate to contact our law firm if necessary.
What issues do we typically handle for clients in relation to negotiations with the trade union?
- What are the conditions for establishing a trade union?
- How to start a trade union?
- What are the rights of a trade union?
- How to enter into a collective agreement?
- Does the collective agreement comply with the law?
- What is the proper procedure in collective bargaining?
- Representation of trade unions in negotiations
- Representation of employers in negotiations with trade unions
- Supervision of the legitimacy of trade union elections
- Legal assistance in organising general meetings
- Drafting trade union statutes
- Disposal of trade union assets
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