In general, a ‘local agreement’ stands for the right given in a collective labour agreement to agree certain matters locally in the workplace. For example, it may be possible to agree flexible working hours arrangements within the scope of the collective labour agreement.
Local agreements usually concern wages, holidays, working hours and similar factors of a company’s single personnel group or the entire personnel of a single company. The provisions of the collective labour agreement apply, unless otherwise agreed locally.
In other words, a local agreement applies to several employees, all employees even. In contrast, your employment contract only applies to the terms and conditions of your work.
Collective labour agreements offer more and more opportunities for local agreement. For example, salary systems, job complexity evaluations and performance bonuses can partially be agreed locally. Similarly, part of the pay increases defined in collective labour agreements can be agreed locally in workplaces. Employment-related legislation, including the Working Time Act and the Annual Holidays Act offer extensive opportunities for local agreement.
A local agreement is possible whenever the employer and employees choose to do so.
A local agreement is possible whenever the employer and employees choose to do so. Usually, it is also successful, and it benefits both parties. You should not accept reduced rights alone – you should also present your ideas of how the working conditions, wages, and other matters important to you should be agreed. You can talk about a local agreement with you shop steward, for example.
For a local agreement to be successful, there must be a confidential relationship between the employer, the employees’ representative and the personnel. A local agreement in the workplace calls for negotiation skills and as equal a position as possible between the parties. Local agreements require knowledge of collective labour agreements and labour law, for this purpose you should contact union trained shop stewards and other employee representatives.
