Collective Bargaining

• Collective bargaining is a voluntary process used to determine terms
and conditions of work and regulate relations between employers,

workers and their organizations, leading to the conclusion of a
collective agreement.
• Collective bargaining is the process in which working people, through
their unions, negotiate contracts with their employers to determine
their terms of employment, including pay, benefits, hours, leave, job
health and safety policies, ways to balance work and family, and
more.
• When employees of an organization vote to unionize, the process for
collective bargaining begins. Collective bargaining is the process of
negotiations between the company and representatives of the union.
The goal is for management and the union to reach a contract
agreement, which is put into place for a specified period of time.
Once this time is up, a new contract is negotiated.
The 5 Stages of Collective Bargaining
Collective bargaining is a process through which the union and

employer exchange proposals, share ideas, mutually solve problems,
and reach a written agreement.
Most times, bargaining occurs when an existing contract is going to
expire. But sometimes, a local will be negotiating a first contract after
organizing a new bargaining unit. Both sides form bargaining teams
and gather information.
The resulting approved contract legally binds both parties. Each round
of successor negotiations allows the parties to revisit existing
agreements.
• 1. PREPARING FOR BARGAINING
• The union’s bargaining team is usually selected through a process
outlined in the union’s constitution and by-laws, while the employer
designates the management
• 2. CONDUCTING NEGOTIATIONS
Negotiations usually take several rounds of bargaining. The union and
management sides express the rationale behind their proposals.
Some contract provisions remain predominantly the same from
contract to contract while others, such as salary, are bargained with
each contract. The parties may modify some sections, and either side
may propose a new bargaining topic.
•
3. RATIFYING THE CONTRACT
When the union and employer teams reach a tentative contract
agreement, they review the proposed contract with their respective
constituency groups.
The union holds a ratification meeting where employees ask questions
and offer opinions on the tentative contract agreement. Individuals are
then asked to vote on the tentative agreement, usually by secret ballot.
A majority of votes determines if the contract is ratified (accepted) or
rejected.
• 4. RESOLVING A CONTRACT DISPUTE.
If the parties cannot reach an agreement, state law generally specifies
how the dispute can be resolved.
Usually, the parties can use mediation, arbitration, and/or a strike or
lockout to reach an agreement. Strikes (and lockouts) are infrequent
in public education but are allowable in several states.
• 5. CHANGING OR CLARIFYING THE CONTRACT.
With the agreement of both parties, any section of a ratified contract
can be revised during the term of the contract. In many districts, labor
and management representatives meet regularly during the term of the
contract to talk about and resolve issues of mutual concern, often
through an established joint labor-management committee.
Conjunctive bargaining: This type of bargaining happens when both
the employer and the union want to gain from the other party's loss. It
usually refers to negotiating salaries and other employee benefits.
Co-operative bargaining: In this type of bargaining, both parties
want to reach a solution that can benefit both parties simultaneously.
Co-operative bargaining is common in disputes over technology,
equipment or work terms.
• Integrative Bargaining
• Each party tries to benefit through integrative bargaining, which is
why it’s often referred to as a form of win-win bargaining. Each side
tries to consider the other’s position and bring issues to the table that
aim to benefit both parties. As such, employees and employers both
stand to lose and gain with integrative bargaining.
Productivity bargaining: Productivity bargaining is when an
employer agrees to offer employees additional bonuses or improve
their work conditions in hopes that this can increase employee
productivity. Essentially, the employer's main concern is the
organization's success.
Composite bargaining: Composite bargaining refers to a situation in
which employees decide to bargain because they're concerned about
their working conditions or policies. Their main goal is to create a
safer and healthier workplace for themselves and others.
• Examples of Bargaining Topics
• Pay rate and structure
• Health benefits
• Incentive programs
• Job classification
• Performance assessment procedure
• Vacation time and sick leave
• Health plans
• Layoff procedures
• Seniority
• Training process
• Severance pay:
• Tools provided to employees
• Process for new applicants
• When the two parties are unable to reach consensus on the collective
bargaining agreement, this is called a bargaining impasse.
• How Would You Handle This?
• Union Busting
• The employees in your organization are unhappy with several aspects
of their job, including pay. You have tried to solve this issue by
creating new compensation plans, but with no avail. You hear talk of
unionizing. When you bring this issue to your CEO, she vehemently
opposes unions and tells you to let the employees know that if they
choose to unionize, they will all lose their jobs. Knowing the CEO’s
threat is illegal, and knowing you may lose your job if the workers
decide to unionize, how would you handle this?
Advantages and Disadvantages of Collective Bargaining
• Advantages
• As the name implies, workers have a larger voice through collective
bargaining. Being in a group with the same goal(s) gives employees
more power to negotiate demands with their employers.
• Companies may be able to shut out the voices of one or two
employees but can’t necessarily do the same with a larger group of
unified individuals.
• Workplace conditions under collective bargaining can see significant
improvements and guarantee all workers the same protections.
• This includes the implementation of health and safety checks as
well as suitable salaries, overtime pay, and vacation time.
• Employers and employees are fully aware of their rights and
responsibilities under a collective bargaining agreement.
• Once employment terms are negotiated, a contract is drawn up.
Both parties agree to the terms, which are clearly defined.
• Disadvantages
• As mentioned above, collective bargaining is often a long, drawn-out
process that can take weeks or even months. Employers and labor
union leaders may have to go back and forth with employment
terms.
• Union leaders are required to update employees and must put the
terms to a vote. If employees vote to reject a contract, the
negotiating process begins again.
• Collective bargaining often comes at a high cost. Employees and
employers may have to take time off from work to negotiate. This
means less time on the job and, therefore, a drop in productivity.
Lengthy negotiations can affect a company’s bottom line.
Pros and Cons of Collective Bargaining
Pros Cons
• Employees have a larger voice. • Lengthy process
• Improves workplace conditions • Comes at a high cost
and protects employees • Employers may be forced to
• Establishes rights and negotiate and accept
responsibilities of employers unfavorable terms.
and employees
• What are the main objectives of collective bargaining?
• The main objective of collective bargaining is for both parties—the
employees’ representatives and the employer—to come to an
agreement on employment terms.
• This is known as a collective bargaining agreement or contract that
includes employment conditions and terms that benefit both parties
involved.
• The Bottom Line
• Collective bargaining is the process in which workers join together to
demand higher wages, greater benefits, or improved working
conditions.
• By negotiating together as a unit, they can negotiate with much more
leverage than they would have alone. In modern economies,
collective bargaining has been essential to the creation of an
industrial middle class.

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• Collective bargaining is a voluntary process used to determine terms

and conditions of work and regulate relations between employers,

Collective bargaining is a process through which the union and

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