20

Jul

2022

Collective bargaining agreement applicable in the case of two activities

Collective bargaining agreement applicable in the case of two activities

In accordance with the so-called “company unity principle”, the collective bargaining agreement applicable in a company must be the one corresponding to the main activity of the company

A change in this main activity would necessarily imply a change of agreement if there is another agreement in whose functional scope it falls more specifically

 

 

Based on the so-called “company unity principle”, the collective bargaining agreement applicable in a company must be the one corresponding to the main activity of the company. If a company carries out one or more activities, the applicable collective bargaining agreement would be that of the main activity (the activity with the highest turnover). A change in this main activity would necessarily imply a change of agreement if there is another agreement in whose functional scope it falls more specifically.

It is not uncommon for a company to carry out several activities, either as part of a business diversification or growth strategy. In these cases, doubts arise as to whether a single collective bargaining agreement must be applied or whether the agreement in force for each of them must be applied.

Thus, doubts may arise when determining which collective bargaining agreement should be applied within a company or work center, where different activities coexist, such as, for example, on the one hand, the commercial activity of renting real estate, and on the other hand, the cleaning of real estate. 

The Supreme Court and the “principle of unity of enterprise”.

In order to clear up doubts, the Supreme Court ruled on January 29, 2002, determining that the collective bargaining agreement of the main activity, i.e., the activity with the highest turnover, should be considered as applicable, in application of the principle of unity of the company. Different would be the case in which there is no predominant activity in the company, since in such case, according to the Supreme Court’s ruling dated June 15, 2005, different types of collective bargaining agreements would be applicable, depending on the activity carried out.

Example:

A company that has two activities:

– Renting of real estate Own account: CNAE 6820 (Residential rentals, premises) 80%.

– Vacation Homes: 20%. 

Currently there are two administrative assistants, for the management of the rentals to which the agreement for offices and offices is applied.

It is intended to hire a person as a cleaner who will provide services in the company’s offices, as well as cleaning the entrances and exits in the vacation homes.

Which collective bargaining agreement should be applied?

The application of a different Collective Bargaining Agreement should not be considered for the hiring of a person to provide cleaning services in the offices and homes, but rather the same Collective Bargaining Agreement for Offices and Offices which itself provides for the professional category of cleaning personnel. 

We can see how the personal scope of application is established in Article 3, where it is determined that the agreement will apply to workers who develop work relations in companies whose main activity is related to office activities, offices and, in general, the provision of administrative services.

In this case, according to case law, even if different activities coexist within a company, the collective bargaining agreement to be applied will be the one corresponding to the predominant activity of the company.

In this sense, in the present case, the same agreement for Offices and Offices will be applicable, which in itself already includes the professional group that performs the cleaning tasks.

For further information, please consult with Labor advisory services.