collective bargaining
Business
Economics
(noun)
A method of negotiation in which employees negotiate as a group with their employers.
Examples of collective bargaining in the following topics:
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A Brief Definition
- Through collective bargaining, employers and employees negotiate the conditions of employment.
- The right to collectively bargain is recognized through international human rights conventions.
- The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA).
- Different economic theories provide a number of models intended to explain some aspects of collective bargaining:
- Define the monopoly union model, the right-to-manage model, and the efficient bargaining model as theories of collective bargaining
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Collective Bargaining
- Collective bargaining is negotiation between unions and employers to come to an agreement on the conditions of employment.
- In collective bargaining, the process of negotiation between employees and employers, employees attempt to achieve employment conditions that serve their shared interests.
- Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management) in respect to the terms and conditions of employment, such as wages, hours of work, working conditions, grievance procedures, and the rights and responsibilities of trade unions.
- The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA).
- It also makes it illegal for employers to retaliate against employees who engage in organizing campaigns or form company unions or to refuse to engage in collective bargaining with the union that represents their employees.
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Labor Union Impacts on Equilibrium
- The primary activity of the union is to bargain with the employer on behalf of union members and negotiate labor contracts.
- In order to achieve these goals unions engage in collective bargaining: the process of negotiation between a company's management and a labor union.
- When collective bargaining fails, union members may go on strike, refusing to work until a firm addresses the workers' grievances.
- Examine the role of unions and collective bargaining in labor-firm relations
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National Labor Relations Act
- Protecting a wide range of activities, whether a union is involved or not, in order to promote organization and collective bargaining
- Allowance of one exclusive bargaining representative for a unit of employees
- Refusing to bargain collectively with the representative of the employer's employees
- *Section 7 rights include: freedom of association; mutual aid or protection; self-organization; to form, join, or assist labor organizations; to bargain collectively for wages and working conditions through representatives of their own choosing; and to engage in other protected concerted activities with or without a union.
- More recent failed amendments included attempts in 1978 to permit triple backpay awards and union collective bargaining certification based on signed union authorization cards—a provision similar to a proposed amendment in the Employee Free Choice Act.
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Labor Unions
- Labor unions provide members with the power of collective bargaining over and fight for workers rights.
- Labor union's activism centers on collective bargaining over wages, benefits, and working conditions for their membership, and on representing their members in disputes with management over violations of contract provisions.
- To join a traditional labor union, workers must either be given voluntary recognition from their employer or have a majority of workers in a bargaining unit vote for union representation.
- To fight employer anti-union programs, unions are currently advocating new "card check" federal legislation that would require employers to bargain with a union if more than 50% of workers signed forms, or "cards," stating they wish to be represented by that union, rather than waiting 45 to 90 days for a federally-supervised a secret ballot election during which time employers can fire, harass and generally make life miserable for pro-union employees.
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The Evolution of Labor Relations
- Unionization is hotly debated, as unions employ collective bargaining on behalf of employees independently from company human resource (HR) policies.
- Whether this loss of interest in collective bargaining is a good thing or a bad thing is up for debate, and the power of trade unions is integral to this discussion.
- Whether this loss of interest in collective bargaining is a good thing or a bad thing is up for debate, and the power of trade unions is integral to this discussion.
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Resolving Disagreements
- The strike never resumed, as the miners received more pay for fewer hours; the owners got a higher price for coal, and did not recognize the trade union as a bargaining agent.
- Labor arbitration comes in two varieties: interest arbitration, which provides a method for resolving disputes about the terms to be included in a new contract when the parties are unable to agree, and grievance arbitration, which provides a method for resolving disputes over the interpretation and application of a collective bargaining agreement.
- This type of arbitration, wherein a neutral arbitrator decides the terms of the collective bargaining agreement, is commonly known as interest arbitration.
- Unions and employers have also employed arbitration to resolve employee and union grievances arising under a collective bargaining agreement.
- The Court held that grievance arbitration was a preferred dispute resolution technique and that courts could not overturn arbitrators' awards unless the award does not draw its essence from the collective bargaining agreement.
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Employment Policy
- United States labor law is a heterogeneous collection of state and federal laws.
- The Act, among other things, prohibits jurisdictional strikes and secondary boycotts by unions, and authorizes individual states to pass "right-to-work laws", regulates pension and other benefit plans established by unions and provides that federal courts have jurisdiction to enforce collective bargaining agreements.
- For the most part, the NLRA and RLA displace state laws that attempt to regulate the right to organize, to strike and to engage in collective bargaining.
- The federal government, along with many state governments, also requires employers to pay the prevailing wage to workers on public works projects, a practice which typically reflects the standards established by unions' collective bargaining agreements in the area.
- While most state and federal laws start from the presumption that workers who are not covered by a collective bargaining agreement or an individual employment agreement are "at will" employees who can be fired without notice and for no stated reason, state and federal laws prohibiting discrimination or protecting the right to organize or engage in whistleblowing activities modify that rule by providing that discharge or other forms of discrimination are illegal if undertaken on grounds specifically prohibited by law.
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National Labor Relations Act
- The National Labor Relations Act limits employers' relations to workers who create labor unions and collectively act in support of demands.
- The National Labor Relations Act (NLRA) is a 1935 United States federal law that limits the means with which employers may react to workers in the private sector who create labor unions, engage in collective bargaining, and take part in strikes and other forms of concerted activity in support of their demands.
- Encouraging the practice and procedure of collective bargaining by protecting the exercise by workers of full freedom of association, self-organization, and designation of representatives of their own choosing.
- Protecting a wide range of activities, whether a union is involved or not, in order to promote organization and collective bargaining.
- Refusing to bargain collectively with the representative of the employer's employees.
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Unions
- Unions, as groups of employees interested in bargaining for specific rights and/or contractual benefits, are the responsibility of human resource professionals.
- The labor union, through its leadership, bargains with the employer on behalf of union members and negotiates labor contracts (collective bargaining) with employers.
- Aside from collective bargaining, union activities vary, but may include the following: