Freedom of association and collective bargaining provide opportunities for constructive dialogue, not confrontation, which uses energy to focus on solutions that bring benefits to the company, its stakeholders and society as a whole. The American Federation of Labor was founded in 1886 and provided a large number of workers with unprecedented bargaining power.  The Railway Labor Act (1926) required employers to bargain collectively with unions. Collective agreements are widespread in the Swedish labour market and largely regulate the relationship between employer and workers. The Swedish Association of Industrialists is bound by thirteen collective agreements. Seven of them are employment contracts. The Industrial Workers` Union Metall is the opponent in five agreements, Pappers (The Swedish Paper Workers Union), GS (Swedish Union of Forestry Workers, Wood and Graphic Designers) in one and SEKO (Union of Service and Communication Employees) in two. The Swedish Association of Industrialists is also bound by four collective agreements for employees. The counterparties to this agreement are the employee unions Ledarna (the Swedish organisation for managers), Unionen and Sveriges Ingenjurer (Swedish Federation of Graduate Engineers). In addition, the Swedish Association of Industrial Employers` Organisations is bound by a collective agreement that includes both blue-collar and white-collar counterparties that exist in the same agreement with Pappers (The Swedish Paper Workers Union) as a worker`s equivalent. This link provides a comparative table of the legal obligation to consult workers` representatives on collective redundancies: /public/english/dialogue/ifpdial/info/termination/downloads/table4.pdf A collective agreement is concluded by negotiation. The Participation Act specifies that any trade union organisation and employers` or employer organisation has the right to negotiate in all areas that influence the relationship between the employer and the worker. This may be a settlement by an agreement not yet reached between the parties or a replacement of existing rules with new issues.
A bargaining right for one party means an obligation for the other party to participate in the negotiations. However, there is no legal obligation to reach an agreement (for more information, see “Participation in the Work”). However, a policy of economic stabilization imposed by a government, for example. B with regard to rates of pay, may impose severe restrictions on negotiations. In this case, the restriction should be imposed as an exceptional measure and only to the extent it is necessary. In accordance with national laws and dissent, measures should be taken to allow voluntary negotiations between company representatives and workers` representatives on the regulation of wages and conditions of employment through collective agreements.  Workers have the right to choose their representative for collective bargaining purposes.  In order to facilitate real participation in the negotiations, workers` representatives should be allowed to prepare for the negotiations.  Response: the ILO`s tripartite declaration on multinational enterprises and social policy (“MNE Declaration”) states that companies should “contribute to the implementation of the ILO Declaration on Fundamental Principles and Workplace Rights (FPRW) adopted in 1998 and its follow-up.”  The FPRW examines the importance of respect for freedom of association and the right to collective bargaining as well as other “fundamental labour standards” with regard to child labour, forced labour and non-discrimination.