“The employment contract is not an employment contract; Workers are recruited separately and individually, but the mandate and conditions of their employment once in the unit are governed by the provisions of the collective agreement. The rules mentioned in collective agreements most often relate to working hours. These issues include, for example, systems for balancing shift work time, shift work pay and days off. If one party wants to negotiate a mandatory subject, it is an unfair work practice for the other to refuse. Other topics are subjects of generous bargaining and it may be an unfair labour practice for some party to demand negotiations about them (NLRB v. Wooster Division of Borg-Warner Corp., 356 U.S. 342, 78 P. Ct. 718, 2 L. Ed. 2d 823 ).
Therefore, although the parties are obliged to negotiate negotiating matters before implementing unilateral amendments, they can unilaterally amend generous issues without negotiation and cannot be forced to negotiate such amendments. Collective agreements are signed for certain periods, usually two to four years. A collective agreement is mandatory for both the employers` organization and its members, the union and its members, on the other. In addition, a collective agreement is generally also in practice, if not theoretically, for individual non-unionized workers and unionized workers who belong to a union other than the union that are part of the collective agreement, provided that (i) the worker works with collective agreement tasks and (ii) that the union to which the worker is affiliated is not bound by another collective agreement with the employer. 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.  The compensation system is an integral part of the collective agreement as it defines minimum wages. Other collective agreements contain rules on the relationship between the employer and individual workers. Such agreements can be concluded at the central level, by the parties described above and at the local level, between a specific employer and the local union represented in the company.
It is customary for a central agreement on the conditions of employment of each worker to be supplemented by local agreements. This is the standard procedure among companies that are members of the Swedish Association of Industrial Employers. The collective agreement binds signed union members and employers who are members of an employer union that signed the agreement. These agreements are considered normally binding. The Swedish Association of Industrialists is bound by thirteen collective agreements. Seven of them are employment contracts. The Industrial Workers` Union Metall is the opponent in five agreements, Pappers (The Swedish Paper Workers Union), GS (Swedish Union of Forestry Workers, Wood and Graphic Designers) in one and SEKO (Union of Service and Communication Employees) in two. The Swedish Association of Industrialists is also bound by four collective agreements for employees.
The counterparties to this agreement are the employee unions Ledarna (the Swedish organisation for managers), Unionen and Sveriges Ingenjurer (Swedish Federation of Graduate Engineers).