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Collective agreements — capacity to conclude — agreement between employer and workers' delegates — legal effect HEADNOTES Facts In 1975 the management of the appellant company concluded an agreement with the workers' delegates in the undertaking regarding the conditions of payment of the end-of-year bonus. In January 1982, the company announced that it was going to apply new rules in the matter. Thereafter, several employees sought to obtain payment in accordance with the terms of the 1975 agreement. The labour court of Bordeaux found in their favour. It held that the employer could not unilaterally modify the agreement, although it was open to it to denounce the agreement, in the light of new circumstances, in conformity with the procedures laid down in the Labour Code. This was an appeal from that decision. Decision The judgment of the labour court was quashed. La w Applied Labour Code Article 411.17: [Trade unions] may enter into contracts or agreements with any other trade unions, companies or undertakings. Only such workers' organisations as have been set up as trade unions in accordance with this Title (to the exclusion of associations, irrespective of their purpose) may negotiate collective agreements. Every contract or agree-
International Labour Law Reports Online – Brill
Published: Jan 1, 1986
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