How do collective agreements differ from individual contracts?

Collective agreements are specifically negotiated between employers and a group of employees, often represented by a union. This process allows a collective voice to negotiate terms and conditions of employment, such as wages, working conditions, and benefits, which helps to ensure that the interests of the group are taken into account.

The nature of these agreements is fundamentally different from individual contracts, where terms are negotiated on a one-on-one basis between an employer and a single employee. In collective agreements, the power dynamics shift as a collective group can leverage greater negotiating power than an individual could alone.

While it is true that collective agreements apply to the employees involved in the negotiation, the scope of their application is limited to the specific workforce represented in the agreement, rather than being uniformly applicable across all employees in Australia. Additionally, collective agreements are not governed by international law; they are generally subject to national labor laws and regulations.

Thus, the essence of collective agreements lies in their collaborative approach, representing the collective interests of employees rather than individual negotiations.