The term “collective bargaining” was first used in 1891 by Beatrice Webb, founder of the INDUSTRIAL relations sector in the United Kingdom.  It refers to the type of collective bargaining and agreements that have existed since the rise of trade unions in the 18th century. Although the collective agreement itself is not applicable, many of the negotiated terms relate to wages, conditions, leave, pensions, etc. These conditions are included in a worker`s employment contract (whether the worker is unionized or not); and the employment contract is of course applicable. If the new conditions are not acceptable to individuals, they may be contrary to their employer; but if the majority of workers have agreed, the company will be able to dismiss the complainants, usually unpunished. When collective bargaining results in an agreement, such as an increase in wages or a change in working conditions, this is called a “collective agreement.” The compensation system is an integral part of the collective agreement as it defines minimum wages. In addition, there are generally binding collective agreements. These important agreements also bind disorganized employers and workers who work for them. The labour and employment legislation adopted by the Finnish parliament lays the foundations for collective agreements. As minimum wages are not set by Finnish labour and employment legislation, workers` wages are based on collective agreements negotiated by trade unions. Under common law, Ford v.
A.U.E.F. , , the courts found once that collective agreements were not binding. Second, the Industrial Relations Act, introduced by Robert Carr (Minister of Labour in Edward Heath`s office), provided in 1971 that collective agreements were binding, unless a written contractual clause indicated otherwise. Following the fall of the Heath government, the law was struck down to reflect the tradition of the British labour relations policy of legal abstention from labour disputes. More detailed information about the collective agreement can be obtained from Shop Steward or pro employee council. In the event of a conflict, Pro members can get assistance from the Shop Steward and the Union staff council. Only one in three OECD workers has wages agreed upon through collective bargaining. The 36-member Organisation for Economic Co-operation and Development has become a strong supporter of collective bargaining to ensure that falling unemployment also leads to higher wages.  Workers are not required to join a union in a specific workplace.