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. 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.  A collective agreement is entered into by negotiation.
The Participation Act specifies that any trade union organisation and employers` or employer organisation has the right to negotiate in all areas that influence the relationship between the employer and the worker. This may be a settlement by an agreement not yet reached between the parties or a replacement of existing rules with new issues. A bargaining right for one party means an obligation for the other party to participate in the negotiations. However, there is no legal obligation to reach an agreement (for more information, see “Participation in the Work”). In Sweden, about 90% of employees are subject to collective agreements and 83% in the private sector (2017).   Collective agreements generally contain minimum wage provisions. Sweden does not have legislation on minimum wages or legislation extending collective agreements to disorganised employers. Unseated employers can sign replacement agreements directly with unions, but many do not. The Swedish model of self-regulation applies only to jobs and workers covered by collective agreements.  The Act is now contained in the Trade Union and Labour Relations (Consolidation) Act 1992 s.179, which provides that collective agreements are definitively considered non-binding in the United Kingdom. This presumption can be rebutted if the agreement is written and includes an express provision that it should be legally enforceable. Some collective agreements refer to the general relationship between an employer or employer organisation and trade unions.
These agreements generally address issues such as participation, negotiation procedures and the definition of common objectives related to future labour market developments and employers.