In the Common Law, Ford v A.U.E.F. , the courts once ruled that collective agreements were not binding. Second, the Industrial Relations Act of 1971, introduced by Robert Carr (Minister of Labour in Edward Heath`s cabinet), provided that collective agreements were binding, unless a written contractual clause explained otherwise. After the death of the Heath government, the law was rescinded to reflect the tradition of the UK`s labour relations policy of legally refraining from workplace disputes. After eleven days of strike, an agreement was reached, increasing the salaries of beginners and veterans while guaranteeing them a pension. Workers are not required to join a union on a given job. However, most sectors of activity with an average trade union organization of 70% are subject to a collective agreement. An agreement does not prohibit higher wages and better social benefits, but sets a legal minimum, much like a minimum wage. In addition, a national agreement on income policy is often, but not always, reached, including all trade unions, employers` organisations and the Finnish government.  Collective bargaining involves bargaining that focuses on a number of elements that are not related to payment. They generally concern the well-being of workers and job security.
For example, it includes factors such as working conditions, directives, recruitment and disciplinary procedures. We can also look at inclusive negotiations where both sides lose to win. For example, unions may be willing to forego annual bonuses to have a higher annual salary. Or alternatively, the union would agree to a wage freeze to accept better working conditions. Thus, workers would lose due to a fall in real wages, while the employer would have to invest under better conditions. One area of the ongoing conflict between unions and employers is where wage increases are mandatory bargaining issues. In Acme Die Casting v. NLRB, 26 F.3d 162 (D.C cir. 1994), the Court of Appeal analysed the employer`s historical practice of fixing the frequency and level of wage increases and found that the granting of a wage increase was not left to the discretion of the employer and could not be decided without negotiation with the union (see also The Daily News of Los Angeles v NLRB, 979 F.2d 1571 [D.C. Cir.
1992] [Retrocedation to NLRB to determine whether salary increases, consistent in terms of date, but discretionary in terms of amount, are considered mandatory subjects of negotiation]). A collective agreement consists of several components. Some are negotiable, others are not. Others are usual for union contracts, such as management rights and contribution review clauses. . . .