Although bonuses cover the minimum wage and the terms of a sector, enterprise agreements can cover specific agreements for a given company. The definition of a collective agreement is contained in the Participation Act, which stipulates that a collective agreement is a written agreement between employers` organizations or an employer, on the one hand, and a workers` organization, on the other, which regulates the conditions of employment or the relationship between the employer and the worker. An agreement is considered written if its contents are recorded in approved minutes or if a proposal for agreement and acceptance are recorded in separate documents. Oral agreements or agreements that do not concern the relationship between the employer and the workers are not considered a collective agreement. A collective agreement, a collective agreement (TC) or a collective agreement (CBA) is a written collective agreement negotiated by collective bargaining for workers by one or more unions with the management of a company (or with an employer organization) that regulates the commercial conditions of workers in the workplace. These include regulating workers` wages, benefits and obligations, as well as the obligations and responsibilities of the employer, and often includes rules for a dispute resolution process. Workers are not required to join a union in a given workplace. Nevertheless, most industries, with an average union training of 70%, are subject to a collective agreement. An agreement does not prohibit higher wages and better benefits, but sets a legal minimum, much like a minimum wage. In addition, an agreement on national income policy is often, but not always, reached, bringing together all trade unions, employers` organisations and the Finnish government.  Enterprise agreements can include a wide range of issues such as: collective agreements are widespread in the Swedish labour market and largely regulate the relationship between employer and workers.
This chapter assesses the role of collective bargaining in labour market performance in OECD countries. It is based on the detailed characterization of collective bargaining systems and practices presented in the previous chapter. Based on a rich mix of data from countries, sectors and workers, this chapter examines the link between different wage conditions and employment, wages, wage inequality and productivity. It will then examine how large-scale worker and employer organisations, administrative enlargements, organized forms of decentralisation and wage coordination can contribute to a better balance between inclusion and flexibility in the labour market.