Collective Contract System
Collective contracts are an important form of labor management by organizations, and a basic system of labor relations between employers and employees. In essence, collective contract is an agreement negotiated between employers and labor union for collective labor relations mainly in accordance with labor laws.
A collective contract is an agreement between the employer and the labor union through collective negotiations that stipulates the labor relations, rights and obligations of the parties, labor conditions, labor remuneration, social welfare, and labor management organizations.
In the system of collective contracts, the Labor Union has the right to initiate collective bargaining, and employers must negotiate a collective contract with the union. Generally, the terms of the contract are based on the actual wages, working conditions and other factors of the enterprise, and follow the principle of consensus through consultation. Employers should negotiate in good faith, and labor unions should also regard the financial conditions and other factors of the employers. After the collective contract is established, it should be implemented throughout the enterprise.
From the perspective of economic benefits, the implementation of collective contracts can help promote the understanding and execution of law among employers and employees, eliminate labor disputes and establish a harmonious labor relationship. Also, collective contracts can effectively protect the rights and interests of employers and employees, eradicate illegal labor relations and create an advantageous environment for enterprises to attract more talented professionals.
The terms of a collective contract should be just, fair and objective and comply with labor laws. Both the employer and the employees have the obligation to abide by the rule. The employer must fulfill its obligations based on the legal labor principles and the collective agreement. Both employer and employee have the right to appeal to the labor arbitration in case of breach of the collective contract.
In the enterprise,the implementation of collective contract plays an important role in the execution of labor relations. It is a kind of legal agreement that stipulates the rights and obligations of employers and employees. It is of great significance to economic development, and is the basic guarantee of harmonious labor relations.
