A collective agreement is reached through negotiation. The Participation Act specifies that any trade union organization and any employers` or employers` organization has the right to negotiate in all matters concerning the relations between the employer and the worker. This may involve resolving unresolved issues between the parties through an agreement or replacing existing regulations with new ones. A right to negotiate for one party implies an obligation for the other party to participate in the negotiations. However, there is no legal obligation to agree (see the “Participation at work” section for more information). The final step in the collective agreement is ratification by union members. Once the memorandum has been agreed upon by the parties, union members have the opportunity to review the final contract document. Union members have confidence that union representatives will negotiate on their behalf. However, since union members are not present at every stage of the bargaining process, there may be some points on which they are not clear. Trade union and bargaining transparency is managed and implemented by the Office of Labor-Management Standards (OLMS) of the Ministry of Labour. The term “collective bargaining” was first used in 1891 by Beatrice Webb, a founder of the industrial relations sector in the United Kingdom.
 It refers to the type of collective bargaining and agreements that existed since the rise of trade unions in the eighteenth century. All the above-mentioned agreements regulate issues such as the conditions and termination of employment contracts, working time, minimum wage, holiday and sickness benefits, etc. As has already been said, these agreements are often supplemented by local collective agreements. British law reflects the historical contradictory nature of British industrial relations. In addition, workers are concerned that if their union is prosecuted for violating a collective agreement, the union could go bankrupt, allowing workers to remain in collective bargaining without representation. This unfortunate situation could change slowly, partly under the influence of the EU.