Collective agreements in Germany are legally binding, which is accepted by the public, and this is not a cause for concern.  [Failed verification] While in the United Kingdom there was (and probably still is) an “she and us” attitude in labour relations, the situation is very different in post-war Germany and in some other northern European countries. In Germany, the spirit of cooperation between the social partners is much greater. For more than 50 years, German workers have been represented by law on boards of directors.  Together, management and workers are considered “social partners.”  The main body of the Collective Bargaining Act is the National Labor Relations Act (NLRA). It is also called the Wagner Act. It expressly grants workers the right to negotiate collective agreements and join unions. The NLRA was originally adopted in 1935 by Congress as part of its power to regulate intergovernmental trade, in accordance with the trade clause in Article I, Section 8 of the U.S. Constitution. It applies to most employees and private non-agricultural employers working in certain sectors of intergovernmental trade. The decisions and regulations of the National Labor Relations Board (NLRB), established by the NLRA, significantly complement and define the provisions of the act.
It is important to note that after the conclusion of a KBA, both the employer and the union are required to respect this agreement. Therefore, an employer should retain the assistance of a lawyer before participating in collective bargaining. A collective agreement is the ultimate goal of collective bargaining. As a general rule, the agreement defines salaries, hours, promotions, benefits and other conditions of employment, as well as the procedures for dealing with disputes that result from them. Since the collective agreement cannot address all future employment problems, past unwritten customs and practices, external law and informal agreements are just as important to the collective agreement as the written instrument itself. In the United States, collective bargaining takes place between union leaders and the management of the company that employs union workers. The result of collective bargaining is called a collective agreement and sets employment rules for a specified number of years. Union members bear the costs of this representation in the form of union taxes. Collective bargaining can involve antagonistic labour strikes or worker closures if both sides find it difficult to reach an agreement. Congress passed the National Labor Relations Act (NLRA) in 1935 (29 U.S.C.A.
No. 151 and following) to establish the right of workers to collective bargaining and other group activities. The NLRA also created the National Labor Relations Board (NLRB), a federal authority empowered to enforce the right to collective bargaining (No. 153). The NLRA has been amended several times since 1935, including 1947, 1959 and 1974. 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.