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Collective bargaining

Collective bargaining

What is collective bargaining?

Collective bargaining is represented by the negotiations between the employer and the employers’ organization and the syndicate or trade union or the employers’ representatives, as the case may be, which have the goal of regulating the employment or labor relations between the two parties, as well as any agreement for issues of common interest.

During the negotiation of clauses and when concluding collective bargaining agreements, the parties are equal and free. The collective bargaining agreements, concluded by observing the legal provisions, represent the law of the parties.

Is it allowed to access the necessary information for the negotiation of the collective bargaining agreements?

In conformity with the Law no. 467/2006 regarding setting the general framework for the employees’ information and consultation, art. 5, in enterprises with minimum 20 employees, the employers have the obligation to notify and consult the employees’ representatives regarding the following issues, according to the legislation in force:

  • the recent and likely evolution of the activities and economic status of the enterprise;
  • the status, structure and likely evolution of employment within the enterprise, as well as regarding the eventual anticipatory measures taken into consideration, especially when the workplaces are threatened;
  • decisions which may lead to important changes in labor organization, in the contractual relations or the labor relations, inclusively those stipulated in the Romanian legislation regarding the specific procedures of information and consultation in collective layoffs and the protection of the employees’ rights in an enterprise transfer.

If the employer fails to observe the obligation of transmitting the aforementioned information to the employers’ representatives, the employer is sanctioned by the Labor Inspection with a fine from 1,000 RON to 20,000 RON.

What is the collective bargaining agreement?

The collective bargaining agreement is the convention concluded in writing between the employer or the employers’ organization and the representatives of the employees, in which the clauses regarding the rights and obligations which result from labor relations are established. The conclusion of collective bargaining agreements has the purpose of promoting and defending the interests of the signatory parties and preventing or limiting collective labor disputes so as to ensure social peace.

The convention concluded in writing between the trade unions of civil servants or special civil servants, their representatives and the representatives of the authority or public institution is called a collective agreement.

What is the duration of a collective bargaining agreement ?

According to the Romanian law, the collective bargaining agreement is concluded for a limited period which cannot be shorter than 12 months or longer than 24 months. The execution of the collective employment contract is mandatory for the parties.

Collective bargaining agreements may be negotiated at the level of units, unit groups and business segments. Collective negotiation is mandatory only at the unit level, except when the unit has less than 21 employees.

The negotiation initiative belongs to the employer or employers’ organization. If the employer or the employers’ organization does not initiate the negotiation, it will commence following the written request of the representative trade union or of the employees’ representatives, within maximum 10 calendar days from the notification of the request. The employer’s refusal to begin the negotiation of the collective employment contract is sanctioned with a fine between 5000 RON and 10,000 RON. Only the Labor Inspectorate shall ascertain offences and shall apply sanctions.