Reasons for Stalemate After Conciliation or Arbitration Where Unionised Companies and Unions Could Not Enter Into Collective Agreements

19 Mr Gan Thiam Poh asked the Minister for Manpower what are the common reasons for stalemate after conciliation at the Ministry or arbitration at the Industrial Arbitration Court where unionised companies and unions are unable to enter into Collective Agreements.

Dr Tan See Leng: A Collective Agreement (CA) is a formal agreement between the union and employer, which states the employees' terms and conditions of employment. Whether or not a CA should be put in place is a matter for the union and employer to decide on mutually. Reasons why some unions and employers do not enter into a CA include, having a small number of unionised workforce or that unions and employers prefer to start off with a less-formal arrangement that focuses on specific areas of cooperation, such as training and grievance handling, to build greater mutual understanding and a stronger relationship before moving towards a CA when both parties are ready.