The TUI Act (80/1938) concerning the rights of trade unions and their position toward employers (Art. 1), strikes and lockouts (Art. 2), conciliation in industrial disputes (Art. 3), The Labour Court (Art. 4) and violation of the act (Art. 5) has had a decisive impact on the development of the private labour market. The Act, which is still in force, was primarily based on the Nordic model. A basic agreement has, however, never been concluded.
Trade unions, not their confederations, are according to the act legal contracting parties concerning wages and terms of their members (Art. 5). Individual trade union members are at the same time bound by the trade union’s statutes and agreements (Art. 3).
When a collective agreement has been signed by the contracting parties it shall be valid from the date of signature if not otherwise agreed, unless it is rejected in a secret ballot within four weeks of the signature (Art. 5). In practice nearly all collective agreements are sent out to the union members for voting.
The trade unions alone have the right to declare strikes and employers confederations and individual employers to declare lockouts (Art. 14).