Employer associations: how effective are they?

Right to unionise

The right to unionise is not specific to employees. Employers also have the right to establish or to join an employer association which will represent them in various situations, such as in collective bargaining negotiations, on national and international labour platforms and before nongovernmental organisations. The main function of employer associations is to represent employers in collective bargaining negotiations. Such representation is optional for employers under the Law on Unions and Collective Bargaining Agreements (6356), although it is compulsory for employees. However, employer associations should take progressive action to increase their membership.

Employer associations

The establishment, organisation and operation of employer associations are regulated under the same legislation that governs employee unions. Law 6356 sets down the rules for establishing an employer association as well as the membership provisions and rights of employer associations. Accordingly, being
deemed an 'employer' is sufficient to become a member of an employer association. The law imposes no limitations on the type of legal entity to be formed, the capital requirements, work type or number of employee members. However, certain limitations are imposed on who can be an establishing member of an employer
association (these are the same limits as are imposed on employee unions).

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First published by ILO (Employment and Benefits Newsletter), March 2015