A company can also apply to a Danish employers` organisation and apply for membership, so that it is covered by the same collective agreement as the employer organisation concerned and its members. The collective agreement also ensures that full pension contributions are paid when workers receive sick leave pay. Some companies under the SCA have also entered into a collective enterprise agreement – see below: the fundamental principle in Denmark is that trade unions have the right to enter into collective agreements with employers and employers` organisations. Unions can take different types of collective action to reach an agreement with an employer. You can also see it as a foreign employer with people who have been deployed to Denmark. There is also a fairly rigid timetable for collective agreement negotiations, with negotiations on most of the manufacturing industry between the CO-industri trade union agreement and the DI employers` association starting the process. “The agreement provides for an increase in the portion of compensation paid into the discretionary payroll account; The money can be chosen by the worker to turn directly into salary, leave or retirement contributions. On the other hand, it was very important for us to emphasize the usefulness and value of the account. The keywords are a little more security for workers – and a little more flexibility for employers,” said DI`s CEO.
As a foreign company in Denmark, you could therefore be contacted by one of the Danish trade unions to conclude an agreement on wages and working conditions. This may be a surprise to some foreign companies, but it is the Danish type of labour market regulation. Foreign companies are not required to sign or follow a collective agreement. However, trade unions have the right to take union action. In the private sector, agreements can be divided into two large groups. For a group, by far the largest, compensation is determined by local negotiations at the company level. Inter-professional agreements are limited to other conditions, and for some but not all sectors, these agreements will also set basic tariffs at the sector level – a floor that applies in very few cases.