Collective agreements – Denmark
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In September 1899, the conflict was however resolved by a reconciliation whereby the employers
acknowledged the employees' right to organise and conduct collective bargaining, while the
employees acknowledged an employer's right to manage and distribute work as well as complied
with a request for a more centralised collective bargaining between the national employers' and
employee organisations (rather than the traditional bargaining between employee organisations and
single enterprises). The reconciliation included an agreement on establishment of the Permanent
Court of Arbitration, in which the production of witnesses
was allowed under an act of 1900.
The court's jurisdiction was limited to disputes about the actual reconciliation, for which reason the
collective agreements often continued to be enforced by means of (threats) of strike or lockout. On
completion of a major conflict in 1908, a committee was therefore appointed to consider an
already existing proposal for actual arbitration courts and rules for the prevention of conflicts and
conciliation during conflicts.
The following year, the committee submitted a report that distinguished between disputes of
interest (concerning formation and renewal of collective agreements) and legal disputes
(concerning interpretation and breach of collective agreements already made). In order to minimise
the use of strike and lockout in disputes of interest, the committee proposed the establishment of a
conciliation board. As to the legal disputes, the committee agreed that there had to be an industrial
peace duty during the term of a collective agreement, and that these disputes therefore had to be
resolved in court. Accordingly, in 1910 two acts provided the establishment of a conciliation board
The Permanent Court of Arbitration was composed of a legal chairman and six industrial
arbitrators, three of whom were appointed by the Confederation of Danish Employers and three by
"De Samvirkende Fagforbund" (today named the Danish Confederation of Trade Unions). The
arbitration court had exclusive jurisdiction to hear disputes concerning the parties' general
agreement named "Septemberforliget" and cases concerning breach of ordinary collective
agreements, while cases concerning interpretation of the latter were heard by the collective parties'
own conciliation and arbitration system.
The latter still applies. However, the original restrictions of the governmental arbitration court's
jurisdiction to hear cases concerning employees in trade and industry as well as navvies and
transport workers no longer apply, and the jurisdiction of the court, which has since 1964 been
named the Labour Court ("Arbejdsretten") has been extended continuously so that, since 1973, it
has in principle included the entire, very substantial section of the private and public labour
markets that is now covered by collective agreements.
There is still only one labour court, but it functions at several levels. Basically, a case is heard by
the chairman or one of the vice-chairmen acting as the presiding judge and six of the industrial
judges, who no longer have to be representatives of the Confederation of Danish Employers and
the Danish Confederation of Trade Unions, but may include representatives of various employers'
and employee organisations etc. Test cases may be heard by three legal judges, and employers' or
employee organisations that are not members of an organisation entitled to appoint industrial
judges have since 1997 been entitled to demand that their cases be heard by the legal judge alone.
However, a considerable part of the approx. 1,400 cases annually brought before the court are,