Section 2. Basic concepts. The term “collective agreement” refers to a legal act governing industrial, socio-economic and professional relations between the employer and workers in a company, organization or organization (hereafter referred to as “companies”). Section 11. Parties to a collective agreement. A collective agreement is concluded between the workers, represented by one or more unions or by other representations authorized by the workers, and the employer, either directly or by its duly authorized representatives. In Sweden, about 90% of employees are subject to collective agreements and 83% in the private sector (2017).   Collective agreements generally contain minimum wage provisions. Sweden does not have legislation on minimum wages or legislation extending collective agreements to disorganised employers. Unseated employers can sign replacement agreements directly with unions, but many do not.
The Swedish model of self-regulation applies only to jobs and workers covered by collective agreements.  Section 6. Right to negotiations. Each of the parties has the right to take the initiative of collective bargaining to prepare, conclude or revise a collective agreement or agreement. If the negotiating parties have reached an agreement, their agreement must be ratified and signed before it is a collective agreement. In certain circumstances, social partners may agree on a tariff regime. Traditionally, a collective agreement is defined as an agreement between a union or other workers` association, on the one hand, and an employer organization or a company, on the other. It is forbidden to include in employment contracts conditions of workers less favourable than those provided for by legislation, collective agreements or agreements. Unions and employers who conduct collective bargaining must be in good faith.
Section 7. Negotiated procedure. For the purpose of negotiating and developing a draft collective agreement or agreement, the parties set up a committee composed of an equal number of representatives responsible for the necessary powers. Section 26. Responsibility for violations or non-application of a collective agreement or agreement. Persons who represent the employer convicted of violating or failing to enforce a collective agreement or agreement to which they are bound are liable to a fine ten times higher than the minimum wage imposed by the courts. The collective agreement may also include other clauses, such as taking into account the company`s economic situation, particularly those that offer workers more favourable working and socio-economic conditions than the standards and provisions of the legislation and conventions (additional leave, pension increases, pre-retirement, compensation for transportation and service costs, free or reduced meals in the establishment and for the children of workers in schools and preschools). , as well as other types of benefits and compensation).