Collective bargaining is a cornerstone of industrial democracy. It gives the
employees a collective voice vis-à-vis the employers who always represent
collective entities (i.e. the companies). The quantitative importance of collective bargaining as a means of regulating the employment terms generally increases
with its coverage, i.e. the number of employees under its purview. Since the
employees account for the vast majority of the population, the terms of
employment are of macroeconomic relevance and relate to broader
developments of economy and society. Hence, collective bargaining is a matter of not only industrial democracy, but also of socio-economic governance.