What is Collective Bargaining?

In the United States, collective bargaining refers to labor, salary, and benefits negotiations conducted between workers and employers through a labor union. In the U.S., approximately 7.2% of private sector employees and 37% of public sector employees are unionized, covering groups ranging from teachers and professional athletes to construction workers and other laborers, airline employees, and myriad other groups. Read on to learn more about this negotiation process and how it is used to develop employment contracts.

What Terms of Employment Are Negotiated?

While negotiations typically focus on wages, other benefits and terms of employment are also at stake. These vary depending on the union, but they typically include working conditions and rules, base work hours and length of shift, holidays and vacations, sick leave, and retirement and health benefits. Some unions will negotiate individually with a single employer, while larger unions may negotiate with a group of national employers to come to an agreement that applies to all employees of those companies or groups.

What Is the Result of this Process?

Ideally, the negotiation process is resolved with a collective bargaining agreement, which outlines the above conditions for a set period of time (typically one to three years). At the end of that period, the union will reopen negotiations in an attempt to come to revised terms. However, if an agreement is not reached, the union leaders and employers may come to a stalemate, which often leads to either a strike or employees working without a contract for some length of time.

How Is the Process Governed?

The rules of this process are federally mandated by the National Labor Relations Act (NLRA), which was passed by Congress in 1935. In addition to the federal regulations outlined by the NLRA, each state has its own rules that govern collective bargaining. Arbitration in the case of an inability to come to an agreement is also outlined under state and federal laws.

How Can Workers Become Involved in the Negotiation Process?

If you are an employee who works in a union and would like to learn more about how to become involved in this process, consider attending union meetings and reaching out to your local leaders. Your employer should provide information about the person you should contact if you have questions about your wages, benefits, and/or work conditions, as well as update you regularly on the status of your contract. The U.S. Department of Labor maintains a set of resources on agreements that may be useful if you’re interested in learning more.

Additional Resource: What Does a Labor Relations Manager Do?