Employers are usually required to recognize a union for the duration of a collective agreement (CBA), which can last up to three years. So what if the employer has proof that at least half of the workers in a unit no longer want to be represented by the union? Formal bargaining meetings begin and the employer and bargaining committee listen to each other`s ideas and priorities. The process always involves formal discussions with notes, so there is a record of what was said in case there is a question or dispute later. Every year, millions of American workers negotiate or negotiate their negotiated contracts. However, some employers are trying to undermine existing bargaining relationships and cancel many hard-won contract terms. Trade unions continue to fight for the inherent rights of workers and to restore the balance of economic power in our country through collective agreements. The bargaining unit conducts a vote, either in person or by mail. You will always have a say in whether or not to accept the tentative agreement. A treaty is not considered effective until members have voted in favour of its ratification. In the meantime, company representatives will also submit the agreement to their stakeholders for approval.

Introduction A collective agreement applies to an employment relationship if the employer is either (i) a member of an employers` association that has entered into such an agreement, or (ii) the employer itself is a party to such an agreement. For a collective agreement to apply, the employee must be a member of the competent union that entered into the collective agreement. In addition, the rights and obligations provided for in a collective agreement apply if the contract is declared universally binding. In such cases, the legal standards set out in the respective collective agreement apply directly and with binding effect. In addition, to ensure that the benefits of a collective agreement apply to workers who are not automatically bound to it (referred to as “foreigners”), individual employment contracts often contain dynamic or static dismissal clauses. As a general rule, employers include such clauses in all employment contracts in order to avoid having to manage two separate wage systems and to avoid all employees immediately joining the union in order to benefit from the benefits set out in the collective agreement. Where a collective agreement is directly applicable and contains rules of binding effect that deviate from the legal standards provided for therein, such derogations are only permitted if (i) they are approved by the collective agreement or (ii) they are for the benefit of the workers. Therefore, at any time, but especially in times of economic depression or financial crisis, the question arises as to whether employers can change the conditions of their labour relations, even if this may be to the detriment of their employees. As a result, employers often look for ways to withdraw from collective agreements in order to avoid the application of the legal standards set out in collective agreements. This update examines different methods to achieve this and takes into account the different legal risks that each method entails.

Termination of the contract with the employers` association In accordance with § 3 para. 3 of the Collective Agreements Act, a collective agreement remains enforceable until it expires or is terminated. Thus, the termination of membership in the employers` association does not put an end to the responsibilities imposed by the collective agreement. It will only ensure that the employer is not bound by future collective agreements. In addition, in accordance with Article 4(5) of the Act, the legal standards set out in an agreement continue to apply after the expiry of a collective agreement. Thus, the employer is always bound by such legal norms until they are replaced by a subsequent regulation. These agreements include collective agreements, company agreements and individual agreements. Another problem arises from the referral clauses. Dynamic referral clauses in employment contracts signed after 1 January 2002 shall not be interpreted as equal treatment clauses. Therefore, future amendments to the collective agreement will be binding on employees, regardless of the employer`s membership in the employers` association. Outsourcing According to German labour law, an employer can close his company or part of his company and dismiss employees who are affected by the closure for operational reasons. According to this, the employer can enter into service contracts or enter into agreements with other companies with these employees, who are then considered freelancers.

Under these agreements, former workers (who work as freelancers) or companies are often hired to provide the same services provided by laid-off workers before they are fired. The applicable collective agreement does not apply to employees who are employed on one of these bases. However, such outsourcing entails other legal risks. To be valid, dismissal for operational reasons requires that the specific roles assumed by the dismissed employees have been eliminated for external or internal reasons. When an employer enters into service contracts with freelancers or a separate company to provide the same services previously provided by laid-off workers, it is highly controversial whether the specific roles in question have really been eliminated. Therefore, such termination may be considered null and void. Works councils are unlikely to accept such redundancies. In addition, employers who enter into service contracts with separate companies may see such a process legally considered as a business transfer. Under German labour law, a dismissal caused by the closure of a company or a section of a company is void if a court considers that outsourcing is legally a transfer of a company.

In addition, outsourcing is generally seen as an operational change that involves other legal rights and obligations, such as . B the obligation to negotiate a conciliation of interests with the works council or to conclude a social plan, after which the workers concerned are generally entitled to benefits such as redundancy payments. Even after the outsourcing process is complete, other legal risks arise if freelancers are independent only in name and are therefore considered employees. .