In the chapter on industrial relations, the ILO-MNE statement clarifies the importance of negotiations between representatives of the company`s management and workers` representatives on the regulation of wages and conditions of employment through collective agreements: „Workers employed in multinational enterprises should have the right to have organizations representative of their choice recognized for collective bargaining purposes. , in accordance with national laws and debates.“  The ILO`s 1998 declaration on fundamental principles and rights in the workplace reaffirms the importance of effective recognition of the right to collective right. Consultation should not be seen as a substitute for collective bargaining. A collective agreement (TES) is an interim contract between a union and an employer union on the conditions of employment observed in this area. 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). In addition, the Swedish Association of Industrial Employers` Organisations is bound by a collective agreement that includes both blue-collar and white-collar counterparties that exist in the same agreement with Pappers (The Swedish Paper Workers Union) as a worker`s equivalent. 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.
It is important to note that after the conclusion of a KBA, both the employer and the union are required to respect this agreement. Therefore, an employer should retain the assistance of a lawyer before participating in collective bargaining.