The collective bargaining process is bilateral in nature, i.e. negotiations take place between employers and workers without third party intervention. The parties concerned have divergent positions and the negotiations lead to an agreement. The goal is to reach an agreement. A major weakness in collective bargaining is the diversity of unions. In a situation of multiple trade union policy, even a recognized trade union union, with long-standing stable and generally positive relations with management, adopts a combative attitude as its conscious strategy. Collective bargaining has increasingly taken over the prerogatives of employers to unilaterally set the terms of employment of their employees. In addition to wages, working hours and working conditions, many more issues have been addressed in the area of collective agreements. Thus, collective bargaining has tended to have a significant influence on the autocracy of employers when deciding on the concerns of their employees. Collective bargaining is based on the principle of industrial democracy, in which the union represents workers in negotiations with the employer or employers. Industrial democracy is the government of labour with the agreement of the governed — the workers.
The principle of arbitrary unilateralism has given way to that of self-management in industry. In fact, collective bargaining is not just a signing of a collective agreement that ends seniority, leave and wage increases by getting around the table. Workers are not required to join a union in a given workplace. Nevertheless, most industries, with an average union training of 70%, are subject to a collective agreement. An agreement does not prohibit higher wages and better benefits, but sets a legal minimum, much like a minimum wage. In addition, an agreement on national income policy is often, but not always, reached, bringing together all trade unions, employers` organisations and the Finnish government.  Distribution negotiations are defined as a negotiation process in which one party is favoured at the expense of the other party. This generally involves income redistribution in the form of higher wages, higher bonuses or higher financial benefits.