Collective agreement – what does it mean?
A collective agreement is a joint agreement on salary and employment terms. But what does it mean in practice? Who is covered? And how are agreements negotiated? Learn more here.
A collective agreement is a joint agreement that defines key employment terms.
The agreement is negotiated between employees and employers. Trade unions – including Pharmadanmark – negotiate on behalf of employees.
Employers may include individual companies, employer organisations, or public employers.
What does a collective agreement include?
A collective agreement defines the terms of your employment.
These typically include working hours, allowances, holiday, salary, pension, and parental leave.
Are you covered by a collective agreement?
Whether you are covered depends on your employer.
If you work in the private Life Science industry, you are rarely covered by a collective agreement. However, there are exceptions. Some private companies – such as Takeda Pharma – have agreements with Pharmadanmark.
If you work in the Public sector, you are automatically covered by a collective agreement.
If you work in a pharmacy, you are also covered. This agreement is negotiated between Pharmadanmark and the Association of Danish Pharmacies.
You can be a member of Pharmadanmark even if your collective agreement is negotiated by another union. If you are unsure, contact our legal team at jura@pharmadanmark.dk.
What are the benefits of a collective agreement?
If you are not covered by a collective agreement, you must negotiate your salary and employment terms yourself.
In addition, your employer may change your employment terms without collective negotiation.
If you are covered by a collective agreement, your terms are protected.
They can only be changed when the agreement is renegotiated, and a new collective agreement is reached.
What are collective agreement negotiations?
A collective agreement typically applies for two to three years. It must then be renewed through negotiations.
Before negotiations begin, unions gather input from their members on key priorities.
The Danish Confederation of Professional Associations (Akademikerne (AC)) – which represents 26 member organisations, including Pharmadanmark – consolidates these inputs into a joint set of demands.
Negotiations are then carried out with employer organisations.
The process is usually solution-oriented, and agreements are often reached. However, if no agreement is reached, conflict may arise. This can result in strike action by employees and lockout by employers.
In most cases, an agreement is reached. It is then submitted for approval across all member organisations.
Once approved, the new collective agreement takes effect with updated terms.
Do you need legal assistance?
You can always contact our legal team if you have questions or need help.
Phone: +45 39 46 36 05
Mail: jura@pharmadanmark.dk
