In Scandinavia, there is no minimum wage. Instead, they are determined by collective bargaining. A minimum wage is set in the Scandinavian countries of Denmark, Norway, Sweden and Finland. It should not be confused with a minimum wage, which is universal and dictated by the government. Distribution negotiations are defined as a negotiation process in which one party benefits without party at the expense of the others. This generally involves income redistribution in the form of higher wages, higher bonuses or higher financial benefits. In simple terms; Anything related to money transfer. In addition, a number of agreements may have a fixed expiry date, until a new round of negotiations will take place. The tariff system can therefore be seen as an ongoing process. Collective bargaining is the process in which a group of workers negotiates “collectively” with the employer. This is usually the negotiation of wages, working conditions, benefits and other factors relating to the remuneration package and workers` rights. Collective bargaining is one of the main ways to resolve disputes and help industry deal with social partners.

This is normally a long-term process to reach a long-term agreement between the parties. However, the method still faces many problems and problems. These agreements have largely gone from minimum wage requirements as a priority and to negotiations on wage caps. For example, the recent 2011 agreement included salary caps, free agency rules, rookie salaries and franchise tags. An agreement in principle is usually reached and, at this stage, the most complex details are elaborated. In other words, a union that employs 100 per cent of employers has significant power. If they were to go on strike, it would cause serious disruption to the employer. As a result, all allocation negotiations are significantly skewed in favour of trade unions. In Scandinavia, collective agreements are concluded by sector. For example, retail may have a different minimum wage than the hotel and restaurant industry. There are also agreed variations that allow experience and age.

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. At this point, the unions will try to hold the employer to account and ensure that the agreement is implemented. Do workers, for example, receive the agreed minimum wage? Or did the company build the newly requested canteen on time and at an agreed quality? Concession negotiations are based on the fact that unions return previous benefits to the employer. For example, unions may agree on lower wages in exchange for job security. The role of collective bargaining is to give workers greater bargaining power vis-à-vis the employer. It is then generally thwarting a number of key sectors such as wages, benefits, pensions, workers` rights, working conditions and the protection of workers` employment. With its global data set, the Wage Indicators Foundation provided information that could not be imagined ten years ago.