The Power to Alter Personal Provisions in Collective Agreements

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On two notable occasions in the past two years, it was found necessary to use legislation in order to buttress the potency of general collective agreements. The first of these occasions was when legislation was used to give overriding legal force to a general collective agreement between the Histadrut and the Government incorporating the tax reform recommendations of the Ben Shachar Committee. The second was a similar use of legislation with regard to the general collective agreement between the Histadrut and the Government incorporating the special increments recommendations of the Barkai Committee. The two collective agreements concerned shared one important quality: They both purported to derogate from rights previously enjoyed by employees under existing collective agreements. One of the reasons for legislative intervention to support these agreements was the existence of doubt as to the legal effectiveness of their attempt to derogate from the individual employees' rights.The source of the doubt as to the legal effectiveness of such agreements lies in the existence of two distinct levels at which a collective agreement functions: the collective and the individual levels. At the collective level, conditions are determined by the collective bargaining parties, the employer or employers' organisation on one hand and the employees' organisation on the other; at this level, the collective agreement is a consensual arrangement between the parties to it, the parties fix the terms and have a contractual right to demand their enforcement. The terms fixed at the collective level take effect, however, also at the individual level; the individual employees of an employer bound by the agreement are both bound by the agreement and entitled to enjoy the rights bestowed by the agreement. The Collective Agreements Law gives forceful expression to the effect of the collective agreement's personal provisions at the individual level, giving them immediate and mandatory effect as part of each individual employee's employment contract.