Collective agreements as a determinant of wages

Abstract

Collective bargaining is widely accepted as a democratic way within the industrial relations system, whereby management and trade unions, being the workers' representatives agree on the terms under which both parties should function and perform their duties in the industrialization process of the country. Thus collective bargaining is one of the essential means of fixing the workers? Terms of employment, their wages in a broad sense, fringe benefits and also the overall process of settlement of industrial disputes, within the industrial relations system.