A collective agreement refers to an agreement between an employer and a group of employees represented by a trade union. These agreements lay out the terms and conditions of employment of the employees, including wages, working hours, and other benefits. The agreement is negotiated and signed by both the employer and the trade union, and it is legally binding.

The collective agreement is an essential document that sets out the relationship between the employer and the employees. It provides a framework for the employment relationship, and it serves to protect the rights and interests of both parties. The agreement also promotes stability in the workplace by providing clear guidelines on how disputes are to be resolved.

For employees, a collective agreement provides several benefits. It ensures that they receive fair compensation for their work, and it protects them from arbitrary changes to their working conditions. The agreement also provides job security, as employees cannot be dismissed without just cause. Additionally, a collective agreement provides a mechanism for resolving disputes in the workplace, which can help to foster a positive and productive work environment.

For employers, a collective agreement provides predictability and stability in terms of labour costs. It allows them to plan for wage increases and other benefits, and it provides a framework for managing their workforce. Additionally, a collective agreement can help to foster positive relations between the employer and the employees, which can lead to increased productivity and lower turnover rates.

Overall, a collective agreement is an important tool for ensuring that both employers and employees are treated fairly in the workplace. It provides a framework for the employment relationship and promotes stability and predictability. For employees, it ensures fair compensation and job security, while for employers, it provides a framework for managing their workforce. As such, a collective agreement is an essential document that should be carefully negotiated and drafted to ensure that both parties are satisfied with the terms and conditions of employment.