What is collective bargaining?
Collective bargaining is a negotiation process carried out by a group of workers, often represented by a labor union, where they select a representative to advocate for better working conditions. This representative negotiates on their behalf.
Collective bargaining legislation
The Wagner Act of 1935, also known as the National Labor Relations Act (NLRA), established a framework for collective bargaining as well as guaranteeing workers’ rights to organize. The law applies to all employers engaged in interstate commerce except for agriculture, airlines, government, and railroads. Note: Railroad workers and many other employees in the transportation industry are covered under the Railway Labor Act.
How the collective bargaining process works
According to the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), about three-quarters of private sector workers and about two-thirds of public sector workers have the right to engage in collective bargaining.
The process varies slightly from one union to another, but it typically goes as follows:
1. There is a need for negotiation. This may be a labor dispute or a need to draft or renew a collective bargaining agreement. Workers and company management may also agree to hold regular meetings to review issues that arise.
2. Both sides prepare. Management and workers choose representatives to negotiate their interests. Both sides will review the current labor contract to identify areas for improvement. Union leaders often conduct surveys of their members to determine the most important priorities for the upcoming negotiations.
3. The parties agree on ground rules. Early in the process, management and workers agree on ground rules, such as the dates and locations for negotiation sessions and when all initial proposals must be “on the table.” The parties also agree on a negotiation style – whether to negotiate based on proposals or interests. In proposal-based bargaining, both parties write proposals to change the contract. In interest-based bargaining, both parties present issues on the table and resolve those issues through mutual agreement.
4. Serious negotiations begin. The National Labor Relations Act (NLRA) defines mandatory, permissible, and prohibited subjects of negotiation. For example, employers must agree to discuss topics such as wages and working hours because those topics are mandatory under the NLRA. On the other hand, they may choose whether or not to negotiate on topics such as the company’s marketing strategies. Finally, the parties are prohibited from including certain issues such as creating “closed shop” provisions that require employers to hire workers who are already union members.
5. Management and workers reach a tentative agreement. After several rounds of give-and-take, both parties arrive at a tentative agreement. The union then takes the agreement back to its members. If management and workers do not reach an agreement, the employer may declare an impasse and implement its last offer. If the union disagrees, the National Labor Relations Board (NLRB) will determine if there is a true impasse and compel the employer to return to the bargaining table. The union may also go on strike, where workers refuse to work until an agreement is reached.
6. Union members vote to ratify the agreement. In some unions, the agreement is considered tentative until it is ratified by the members. Members often vote by secret ballot, which may be required under union rules.
Advantages and disadvantages of collective bargaining for employees and employers
The goal of the National Labor Relations Act (NLRA) was to ensure workers’ rights “to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.” As such, it seems to primarily benefit employees rather than employers. However, the right to collective bargaining is beneficial to both sides.
Advantages:
–
Less disruption to business and the economy and workers’ life pathways.
– Higher wages.
– Time savings.
Disadvantages:
– Less collaborative work environment.
– Fewer jobs.
– Fewer individual options.
Sources:
– ACLU. “Collective Bargaining and Civil Liberties.” Accessed July 21, 2020.
– The Brookings Institution. “Declining Worker Power and American Economic Performance.” Accessed July 21, 2020.
– The Bureau of Labor Statistics. “Union Members Summary.” Accessed July 21, 2020.
– The Economic Policy Institute. “Collective Bargaining Beyond the Worksite.” Accessed July 21, 2020.
– Cornell Law School Legal Information Institute. “Collective Bargaining.” Accessed July 21, 2020.
– U.S. National Archives and Records Administration. “National Labor Relations Act (1935).” Accessed July 20, 2020.
– Association of American Railroads. “Collective Bargaining Under the Railway Labor Act.” Accessed July 21, 2020.
– The Economic Policy Institute. “Collective Bargaining Beyond the Worksite.” Accessed July 21, 2020.
– National Labor Relations Board. “1947 Taft-Hartley Substantive Provisions.” Accessed July 21, 2020.
– National Labor Relations Board. “1959 Landrum-Griffin Act.” Accessed July 21, 2020.
– The Washington Post. “House Passes Bill to Rewrite Labor Laws and Strengthen Unions.” Accessed July 21, 2020.
– AFL-CIO. “Collective Bargaining.” Accessed July 21, 2020.
– Massachusetts Nurses Association. “Pointers on Ground Rules at the Bargaining Table.” Accessed July 21, 2020.
– National Education Association. “Collective Bargaining: What It Is and How It Works.” Page 2. Accessed July 21, 2020.
– LEOSU-DC Local 104. “Mandatory and Permissive Subjects of Bargaining.” Accessed July 21, 2020.
– National Labor Relations Board. “Employer/Union Rights and Obligations.” Accessed July 21, 2020.
– United Autoworkers of America. “Collective Bargaining – The Basics.” Page 4. Accessed July 21, 2020.
– U.S. National Archives and Records Administration. “National Labor Relations Act (1935).” Accessed July 21, 2020.
– The Henry Ford. “Ford’s Five-Dollar Day.” Accessed July 21, 2020.
– NPR. “The Middle Class Took Off 100 Years Ago … Thanks To Henry Ford?” Accessed July 21, 2020.
– Gallup. “U.S. Union Workers Score Lower on Work Environment Index.” Accessed July 21, 2020.
– IZA World of Labor. “Do Labor Costs Affect Companies’ Demand for Labor?” Accessed July 21, 2020.
Source: https://www.thebalancemoney.com/how-the-collective-bargaining-process-works-5071952
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