A collective agreement is a written contract between an employer and a union representing workers. The KBA is the result of a broad negotiation process between the parties on issues such as wages, hours and terms of employment. The intention and purpose of the clubs and the federation (the «parties «» ) when this agreement is reached is to set their agreement on certain conditions of employment of all major league baseball players for the duration of this agreement. Each party recognizes the rights and obligations of the other party and agrees to assume its responsibilities under this agreement. In Sweden, about 90% of employees are subject to collective agreements and 83% in the private sector (2017). [5] [6] Collective agreements generally contain minimum wage provisions. Sweden does not have legislation on minimum wages or legislation extending collective agreements to disorganised employers. Unseated employers can sign replacement agreements directly with unions, but many do not. The Swedish model of self-regulation applies only to jobs and workers covered by collective agreements. [7] The United States recognizes collective agreements[9] [10] [11] Although the collective agreement itself is not applicable, many of the terms negotiated relate to wages, conditions, leave, pensions, etc. These conditions are included in a worker`s employment contract (whether the worker is unionized or not); and the employment contract is of course applicable. If the new conditions are not acceptable to individuals, they may be contrary to their employer; but if the majority of workers have agreed, the company will be able to dismiss the complainants, usually unpunished. 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.