From the late 19th century on, a series of social and economic changes have altered the system of labour relations. The transition of bargaining over terms of employment, from the individual to the collective sphere, was the culmination of the historical stages of development. Changes in labour relations have always been, and remain dynamic. Therefore, collective labour law, like the industrial relations system itself, is constantly taking new steps to formulate up-to-date patterns of thought and behaviour. Hence, the legal system finds it difficult to dictate firm policies, and can only try to catch up with the development by post factum legislation and theorization, which can set but a broad and flexible framework.
The collective agreement is presented in this study as a universal phenomenon, resulting from the historical stages of development in labour relations. These stages have led to the crystallization of the collective agreement as it is known today, and to the formulation of its distinctive traits.