In the chapter on industrial relations, the ILO-MNE statement clarifies the importance of negotiations between representatives of the company`s management and workers` representatives on the regulation of wages and conditions of employment through collective agreements: «Workers employed in multinational enterprises should have the right to have organizations representative of their choice recognized for collective bargaining purposes. , in accordance with national laws and debates.»  Collective agreements in Germany are legally binding, which is accepted by the public, and this is of no concern.  [Failed verification] While in the United Kingdom there was (and probably still is) an «she and us» attitude in labour relations, the situation is very different in post-war Germany and in some other northern European countries. In Germany, the spirit of cooperation between the social partners is much greater. For more than 50 years, German workers have been represented by law on boards of directors.  Together, management and workers are considered «social partners.»  A major weakness in collective bargaining is the diversity of unions. In a situation of multiple trade union policy, even a recognized trade union union, with long-standing stable and generally positive relations with management, adopts a combative attitude as its conscious strategy. The Wagner Act and others, such as the Taft-Hartley Act and the Fair Labor Standards Act, have created a legal framework in which the collective bargaining process must work. The legislation covers both procedural aspects (how collective bargaining is to be conducted) and substantive aspects (the types of issues that are mandatory and may or may not be legally incorporated into collective agreements).
Effective collective bargaining helps solve the strategic problems of labour management relationships at the enterprise and industry level. It allows the parties to reach a common compromise on common problems. Management may lose its unilateral discretion on key worker-related issues, on the one hand, while entrusting workers to the issues that affect them both.