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Always check the collective agreement that respects your job when you start your new job. Information about benefits and rights guaranteed by the collective agreement is often valuable. 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. One area of the ongoing conflict between unions and employers is that wage increases are mandatory bargaining partners. In Acme Die Casting v. NLRB, 26 F.3d 162 (D.C. Cir. 1994), the Court of Appeal analyzed the employer`s historical practice of determining the frequency and size of wage increases and found that the issue of granting a wage increase is not left to the employer`s discretion and cannot be decided without negotiation with the union. Since 2003, the U.S. Supreme Court has failed to resolve whether wage increases are mandatory collective bargaining issues, so federal appels courts have developed their own rules to address this issue.
If an employer does not exercise discretion to determine the date or amount of the wage increase, the issue of wage increases is a matter of collective bargaining. NLRB v. Beverly Enter.-Mass., Inc., 174 F.3d 13 (1st Cir. 1999). Even if an employer exercises some discretion in setting wage increases, such as an annual increase to cover the cost of living, this circumstance does not prevent wage increases from becoming a subject of duty if the company has long been granting such wage increases. NLRB v. Pepsi-Cola Bottling Co., 00-1969, 2001 WL 791645 (4. Cir. July 13, 2001). Continuity of the Effects of Collective Agreements The normative effect of collective agreements means that their provisions automatically replace provisions in individual employment contracts that are less favourable to workers (Article 14 of the Employment Contracts Act). The content of a new agreement may deteriorate more favourable conditions if these conditions have been included in individual contracts resulting from a previous agreement, replaced by the new agreement (which is now applicable and introduced), provided that the new agreement contains a clause expressly stipulating that it is generally more favourable to workers (i.e.
the “pejus derogation” under Article 15 of the Act). The provisions of collective agreements are therefore not a substitute for the provisions of certain contracts if they have been agreed directly between the parties to the individual contract and are more favourable to the worker. In other words, the acquired rights of workers on better terms of employment should not, in principle, be affected by a collective agreement, unless they were acquired on the basis of an earlier agreement, which was replaced by a subsequent agreement that dissolved it and which expressly contained a general clause of greater favour. If this is the case, the “conglobao” principle chosen by law as a criterion of greater ease means that one or the other particular aspect of the general conditions of employees can be aggravated (a situation characterized as infringement of acquired rights by derogation from a previous agreement). In the same article, the law also excludes the possibility of abolishing compulsory legislation or abolishing a certain type of supplementary social benefits. See also the arbitration award. In Finland, collective agreements are of general application. This means that a collective agreement in an industry becomes a general legal minimum for an individual`s employment contract, whether or not he or she is unionized.