Collective Agreement Negotiation

Is the employer obligated to negotiate with a union?

Yes, under Georgian law, employers must engage in good faith negotiations if requested by a representative employee association, although they are not forced to agree to all demands.

What is "good faith bargaining"?

It involves attending meetings, responding to proposals with reasons, providing necessary information, and genuinely attempting to reach an agreement without delaying tactics.

Can employees strike during negotiations?

Generally, strikes are a last resort. Before striking, parties must exhaust negotiation and mediation procedures prescribed by the Labor Code.

Who represents the employees?

Employees are represented by a trade union or an elected representative body if no union exists. The employer must recognize their authority to negotiate.

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Collective agreement negotiation is a strategic process where an employer and an employee association (trade union) agree on working conditions. This process is not just about setting wages; it is about creating the organization's labor constitution, which regulates relationships for years to come. Successful negotiation requires not only legal knowledge but also skills in diplomacy, mediation, and economic analysis. Poorly conducted negotiations can lead to deadlock, strikes, and business paralysis, while a professionally managed process creates an environment of stability and mutual respect.

What does the Collective Negotiation service cover?

Specialists on Legal.ge offer full legal accompaniment during the negotiation process:

  • Preparatory Phase: Analysis of the current situation, legal and financial assessment of the other party's demands, development of a negotiation strategy.
  • Document Drafting: Drafting the initial version of the collective agreement, which protects the client's interests and complies with Georgian legislation.
  • Direct Participation in Negotiations: Representing the client at the table, stating a reasoned position, and offering compromise options.
  • Legal Expertise: Analysis of changes proposed by the opposing party and identification of hidden dangers.
  • Execution of Agreement: Editing the final text and providing legal assurance for the signing procedure.
  • Registration and Enforcement: If necessary, registration of the agreement and drafting a plan for its implementation.

Scenarios when you need a professional negotiator

Involvement of a qualified lawyer is necessary in the following cases:

  • Concluding the first collective agreement when parties lack similar experience.
  • Expiration of an existing agreement and the need to agree on new terms.
  • Threat of strike by trade unions or initiation of a collective dispute.
  • During an economic crisis, when an employer wants to cut costs and needs employee consent to change conditions.
  • Entry of an international company into the market that wants to implement local labor standards.

Georgian Legislation and Regulations

The collective bargaining process is regulated by the Labor Code of Georgia. The Code obliges parties to conduct negotiations in "good faith." This means that the employer is obliged to consider the union's demands and provide information necessary for the normal conduct of negotiations.

Also applicable are the Law of Georgia "On Trade Unions" and the Law of Georgia "On Mediation" (if negotiations reach a deadlock and a mediator needs to be involved). Legislation prohibits discrimination based on union membership and protects employee representatives during the negotiation period.

Service Delivery Process

  1. Defining Goals: Together with the client, "red lines" are defined — what conditions cannot be agreed to and where there is room for compromise.
  2. Team Formation: A project group is created, including lawyers, HR specialists, and financiers.
  3. Negotiation Rounds: Meetings are held with the other party. The lawyer ensures the process remains within the legal framework.
  4. Document Reconciliation: Article-by-article review and preparation of the final text.
  5. Signing: Official execution of the agreement and ensuring its entry into force.

Why choose a specialist on Legal.ge?

Successful negotiation is an art that requires not only knowledge of the law but also psychological resilience and strategic thinking. The specialists presented on Legal.ge are experienced negotiators who have worked on the side of both large corporations and strong trade unions. They will help you reach an agreement that is long-term, sustainable, and beneficial for both parties.

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