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Variation of Collective Agreement

10 August 2023

Variation of Collective Agreement: Understanding the Process

Collective agreements are important documents that outline the terms and conditions of employment for a group of workers. They are negotiated between the employer and the employees through their union representatives. These agreements are legally binding and can only be changed through a process called variation.

Variation is the process of changing the terms of a collective agreement. The process can be initiated by either party, but it must be done in accordance with the terms of the original agreement and the applicable laws. The variation process can be lengthy and complex, but it is an important part of maintaining a fair and harmonious relationship between employers and their employees.

There are several reasons why a collective agreement might need to be varied. For example, changes in the law or industry standards may require adjustments to be made to the original agreement. Economic conditions may also necessitate changes to the agreement, such as wage increases or reductions, or changes to benefits packages. Additionally, changes in the workforce, such as mergers, acquisitions, or restructuring, may also require the agreement to be varied.

The variation process begins with a proposal from one of the parties. The proposal must be specific about the changes that are being requested and must be made in writing. The other party must then be notified of the proposal and given an opportunity to respond. If both parties agree to the proposed changes, the agreement can be varied through a written document signed by both parties.

However, if the parties cannot come to an agreement on the proposed changes, the matter may be referred to a mediator or arbitrator. The mediator or arbitrator will review the proposal and listen to arguments from both parties before making a decision. Their decision is then binding on both parties, and the agreement is varied accordingly.

It’s important to note that the variation process must be followed carefully and in accordance with the original agreement and applicable laws. Failure to do so can result in legal action and potentially costly disputes. Therefore, it’s essential for both employers and employees to work closely with their union representatives or legal advisors throughout the variation process.

In conclusion, variation is an important process that allows for changes to be made to collective agreements. It’s important to approach the process carefully and in accordance with the original agreement and applicable laws to ensure that it’s fair and legally binding. Employers and employees should work closely with their union representatives or legal advisors throughout the process to ensure their interests are protected.

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