Collective bargaining

Collective Bargaining
The term “collective bargaining” refers to the negotiation of employment
terms between an employer and a group of workers. Employees are normally
represented by a labor union during collective bargaining.

The terms negotiated during collective bargaining can include working

conditions, salaries and compensation, working hours, and benefits. The goal
is to come up with a collective bargaining agreement through a written
contract. According to the International Labour Organization, collective
bargaining is a fundamental right for all employees.

 Collective bargaining is the process of negotiating the employment

terms between an employer and a group of workers.
 The process takes place between company management and a labor
union. 
 Concerns and issues that may come up during collective bargaining
include working conditions, salaries and compensation, working hours,
and benefits.
 The goal of collective bargaining is to come up with a collective
bargaining agreement or contract.
  There are several types of collective bargaining, including composite
concessionary, distributive, integrative, and productivity bargaining.
 In the 2022 midterm elections, voters in Illinois and Tennessee took
opposite positions: either enshrining collective bargaining rights in their
state constitution or restricting union powers.

Collective Bargaining Works-

As noted above, the International Labour Organization (ILO) states that
collective bargaining is a fundamental right available to all workers. This
means that all employees are entitled to present their grievances to their
employers and to be able to negotiate them. According to the ILO, collective
bargaining helps reduce inequalities in the workplace while providing workers
with labor protection.

Collective bargaining normally takes place between members of corporate

management and labor union leaders, who are elected by workers to
represent them and their interests. Collective bargaining is initiated when
employee contracts are up for renewal or when employers make changes to
the workplace or contracts. These changes include, but aren’t limited to:
  Employment conditions
 Working conditions and other workplace rules
 Base pay, wages, and overtime pay
 Work hours and shift length
 Holidays, sick leave, and vacation time
 Benefits related to issues such as retirement and healthcare23

These issues fall into three different categories, which are referred to as
mandatory subjects, voluntary subjects, and illegal subjects. Mandatory
subjects include anything that the law requires of the employer, such as
salary, overtime, and workplace safety. Voluntary subjects include negotiable
things that the law doesn’t require, such as union issues and decisions about
employer board members. Illegal subjects involve anything that violates laws,
such as workplace discrimination.

The goal of collective bargaining is called a collective bargaining agreement.

This agreement is meant to establish rules of employment for a set number of
years. Union members pay for the cost of this representation in the form of
union dues. The collective bargaining process may involve antagonistic labor
strikes or employee lockouts if the two sides have trouble reaching an
agreement.

 
Union membership in the United States totaled 10.3% in 2021, the most
recent available data. That is a 0.5% decrease from the previous year. Public
sector employees made up 33.9% of labor members, compared to 6.1% of
those from the private sector.

Collective Bargaining Steps

Collective bargaining can be an intense process that can be stressful and
difficult for all parties involved. It often involves a lot of back-and-forth, with
offers and counteroffers. But the end goal is to reach an agreement.
The process goes through a number of stages. These steps can be summed
up as follows:

1. Identifying the issues and preparing the demands: This may

include a list of grievances, such as abusive management practices or
low salaries.
2. Negotiating: The union will hire a team of professional negotiators to
reach an agreement with the employer. The employer will also hire
negotiators, and the two teams will continue to meet until they find a
satisfactory agreement.
3. Coming to a tentative agreement: Once an agreement is reached,
both teams of negotiators will submit the agreement to their
constituents. At this time, any last-minute issues will be raised as the
details are hammered out.
4. Accepting and ratifying the agreement: The agreement will be
submitted to union members, who will have the opportunity to vote for
or against the new contract.
 5. Administering the agreement: After an agreement is finalized,
workers and shop stewards will continue monitoring to ensure that the
company is abiding by its obligations.56

There are instances, though, where the parties involved can’t come to an
agreement. If the negotiation period expires without a collective bargaining
agreement in place, union representatives may suggest that workers go on
strike until their demands are met.

Employers, on the other hand, may decide to lock out their employees until a
suitable agreement is reached. If they are locked out, employees have the
right to picket. In most cases, neither party wants to reach these points,
which are considered drastic measures that are used as a last resort

Collective Bargaining Laws

Most industrialized countries have laws that protect the right to engage in
collective bargaining and form unions, although there may be restrictions on
certain industries. In the United States, the National Labor Relations Act
(NLRA) protects the right of most workers to engage in collective bargaining
activities.

This includes the right to form and join unions, the right to discuss pay and
other grievances, and the right to strike. It also prohibits any employee from
being fired for protected activity. However, certain categories of workers are
specifically excluded from the NLRA; these include federal, state, and local
government employees and agricultural laborers.

The National Labor Relations Board (NLRB) is the government body that

regulates labor practices and collective bargaining under the NLRA. It is also
responsible for supervising union elections and ensuring that workers are not
pressured to vote one way or the other.

Many states also have laws regarding collective bargaining. In the 2022
midterm elections, Illinois voters approved an amendment that would
enshrine collective bargaining rights in their state’s constitution.10 Moving in
the opposite direction, Tennessee voters approved a referendum that would
add a right-to-work law provision to their state constitution, restricting the
power of unions.

Types of Collective Bargaining

Not all types of collective bargaining are the same. In fact, collective
bargaining can be divided into several categories. We’ve noted some of the
most common types below.
Composite Bargaining
Composite bargaining has nothing to do with compensation. Instead, it
focuses on other issues, such as working conditions, job security, and other
corporate policies. These may include hiring and firing practices as well as
workplace discipline. The goal of composite bargaining is to come up with a
suitable agreement leading to a lasting and harmonious relationship between
employers and their employees.
Concessionary Bargaining
As its name implies, concessionary bargaining focuses on union leaders
making concessions in exchange for job security. This is common during an
economic downturn or a recession. Union leaders may agree to give up

certain benefits to guarantee the survival of the employee pool and,

ultimately, of the business.

Distributive Bargaining
This process is characterized as benefiting one party financially at the
expense of the other. This can come through increased bonuses, salaries, or
any other financial benefits. Distributive bargaining normally favors workers
over employers.
Unions must have a higher degree of power for distributive bargaining to
work. Higher membership means more power. If an employer refuses to
accept a union’s demands, it can call a strike.

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
This type of bargaining revolves around compensation and the productivity of
employees. Labor union leaders often use higher salaries and compensation
as a way to boost employee productivity, which leads to higher profits
and value for the employer. For this kind of bargaining to work, both parties
need to agree to financial terms in order to increase productivity.

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.

The process is often considered biased. Because employees are able to

band together under a single union, employers may be forced to negotiate
and accept unfavorable terms in order to keep their businesses running
without much disruption.

Pros and Cons of Collective Bargaining

Pros
 Employees have a larger voice.

 Improves workplace conditions and protects employees

 Establishes rights and responsibilities of employers and employees

Cons
 Lengthy process

 Comes at a high cost

 Employers may be forced to negotiate and accept unfavorable terms.

Criticisms of Collective Bargaining

Collective bargaining is a controversial subject, particularly when it comes to
public sector workers. Because tax revenues fund wages for public sector
employees, opponents allege that the practice leads to excessive pay that
places an undue burden on taxpayers. Supporters argue that any worries
about runaway pay are unfounded and that public sector employees covered
by collective bargaining agreements earn, at most, 5% more than their
nonunion peers.

Former Governors Chris Christie of New Jersey and Scott Walker of

Wisconsin fought high-profile battles with public sector unions. Christie drew
fire from the New Jersey Education Association (NJEA) for restructuring
teacher pensions to rein in state spending.12 Walker’s initiative to limit
teachers’ collective bargaining rights in Wisconsin proved so controversial
that its opponents succeeded in collecting enough signatures to force a recall
election against Walker in June 2012. The governor prevailed in the election.