Collective bargaining is the process in which a group of workers bargain “collectively” with the employer. This is usually used to negotiate remuneration, working conditions, benefits and other factors with regard to the remuneration package and staff rights. In Scandinavia, collective agreements are conducted throughout the sector. For example, retail may have a different minimum wage than hotels and restaurants. There are also variations that are agreed, which allow experience and age. In Scandinavia, there is no minimum wage. Instead, they are defined by collective bargaining. It sets a minimum wage in the Scandinavian countries of Denmark, Norway, Sweden and Finland. It should not be confused with a minimum wage that is universal and dictated by the government.
Conceded collective bargaining is based on the unions returning previous benefits to the employer. For example, unions can accept lower wages in exchange for job security. Workers are not required to join a union on a given job. However, most sectors of activity with an average trade union organization of 70% are subject to a collective agreement. An agreement does not prohibit higher wages and better social benefits, but sets a legal minimum, much like a minimum wage. In addition, a national agreement on income policy is often, but not always, reached, including all trade unions, employers` organisations and the Finnish government.  In examining the types of collective bargaining, it is important to distinguish between a collective agreement. There are also different types of collective agreements, but they deal with the outcome of collective bargaining. In the Common Law, Ford v A.U.E.F. , the courts once decided that collective agreements were not binding. Second, the Industrial Relations Act of 1971, introduced by Robert Carr (Minister of Labour in Edward Heath`s cabinet), provided that collective agreements were binding, unless a written contractual clause explained otherwise. After the death of the Heath government, the law was rescinded to reflect the tradition of the UK`s labour relations policy of legally refraining from workplace disputes.
Inclusive negotiation is in which both parties try to take advantage of what is considered a win-win. The two parties may merge a list of claims that allow both parties to enter into an agreement. The Act is now included in the Trade Union and Labour Relations (Consolidation) Act 1992, 1992, 179, according to which collective agreements in the United Kingdom are ultimately considered non-legally binding. This presumption can be rebutted if the agreement is in writing and contains an explicit provision stating that it should be legally enforceable. In 1968, the National Football Players` Association (NFLPA) and the National Football League (NFL) reached their first collective agreement. The NFLPA was the first recognized players` union and went on strike in 1968 over wages and pensions. We can also look at inclusive negotiations where both sides lose to win. For example, unions may be willing to forego annual bonuses to have a higher annual salary. Or alternatively, the union would agree to a wage freeze to accept better working conditions. Thus, workers would lose due to a fall in real wages, while the employer would have to invest under better conditions.
In this type of negotiation, the union must have sufficient market power to win the negotiations. The employer will want to pay so little wage. But to convince them to pay more, unions need enough members to offer a meaningful incentive. .