As you know, the union avoided cross-country disputes to answer the most recent questions that were raised during the dispute resolution session. I can now point out that an agreement was reached after avoiding the disputes that have been made with cross country. The terms of the agreement are:- A collective agreement is a written contract between an employer and a union representing the workers. The KBA is the result of a broad negotiation process between the parties on issues such as wages, hours and terms of employment. Kostal UK Ltd recognises Unite for collective bargaining purposes. After negotiating with Unite in 2015, Kostal offered all employees a 2% increase in base salary from January 2016 and a Christmas bonus, and a further 2% increase in base salary for workers earning less than $20,000. In return, Kostal proposed a number of changes to conditions, including a reduction in sick pay for newcomers, a reduction in the number of sunday day hours and consolidated breaks. However, the wage agreement and related changes were rejected by an overwhelming majority in a vote on 3 December 2015. It was agreed that the first 20 days would be paid to cleaning agents with an average salary, in accordance with the 2016 leave agreement, all other leave will be paid for the hours they have distributed. In addition, considerable progress has been made within the corporate board in developing a number of rolling charts for the “cleaning agents” level.
Another meeting will be agreed to this effect. As AEAT has found here, employers can directly subdivide offers to workers for whom collective bargaining has failed if they are able to prove that they acted reasonably and for a genuine commercial purpose. However, this can be difficult to prove. The Kostal case highlights the possible financial consequences of an erosion of collective bargaining. Any violation of TULRCA Section 145B now results in a mandatory increase of $3,907 per applicant and there is no legal basis for a court to reduce that amount. The Trade Union Act 1992 (TULRCA) prohibits an employer from subdividing direct offers to members of a recognized union in order to circumvent the collective bargaining process (section 145B). Although the agreement is below our 39-week expectations, it represents a marked improvement over the previous 7-week full-salary agreement over the proposed 33-week full salary.