Collective Agreement

Collective bargaining is the acknowledged best mechanism to agree on terms and conditions of employment. It is also a powerful forum to achieve a cordial relationship between employers and employees. Collective agreement may be regarded as oral or written contracts entered into between an employer or group of employers and a union that is negotiating on behalf of all of the employees that the union represents. In a business context, a collective agreement typically includes any wages, hours, benefits, rules or working conditions that have been mutually agreed upon by employer and their workers union. In order to achieve such purposes, the industrial relations system in a country must provide legal mechanism to enable parties to bargain collectively with a view to concluding a collective agreement. The International Labour Organization (ILO) has adopted Conventions providing a framework for Member States to enact laws that would foster such a mechanism. In this respect, Nigeria has enacted the Trade Disputes Act 2004 and the Wages Boards and Industrial Councils Act 2004, which provides, among others, a mechanism for collective agreement.