Collective bargaining

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Collective bargaining is a process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.

History

The concept of collective bargaining was first developed in the 18th century in Britain. The term itself was coined by Beatrice Webb in 1891. The practice became more widespread in the 20th century, particularly after the National Labor Relations Act of 1935 in the United States, which established the legal right of employees to engage in collective bargaining.

Process

The collective bargaining process typically involves the following steps:

1. **Preparation**: Both parties prepare for negotiations by gathering relevant information and setting objectives.
2. **Negotiation**: Representatives from both sides meet to discuss and negotiate terms.
3. **Tentative Agreement**: Once a preliminary agreement is reached, it is drafted and reviewed.
4. **Ratification**: The tentative agreement is presented to the union members for approval.
5. **Implementation**: Once ratified, the agreement is put into effect.

Types of Collective Bargaining

There are several types of collective bargaining, including:

• **Distributive Bargaining**: Focuses on dividing a fixed amount of resources, often leading to a win-lose situation.
• **Integrative Bargaining**: Aims at mutual benefit and win-win outcomes by addressing the interests of both parties.
• **Concessionary Bargaining**: Involves unions agreeing to give back previous gains in response to economic pressures.
• **Productivity Bargaining**: Links wage increases to productivity improvements.

Legal Framework

The legal framework for collective bargaining varies by country. In the United States, the National Labor Relations Act governs collective bargaining in the private sector, while public sector employees are covered by state laws. In the United Kingdom, collective bargaining is regulated by the Trade Union and Labour Relations (Consolidation) Act 1992.

Benefits and Challenges

Collective bargaining can lead to improved working conditions, higher wages, and better benefits for employees. However, it can also present challenges such as prolonged negotiations, strikes, and potential conflicts between management and labor.

See Also

• Trade union
• Labor law
• Industrial relations
• Strike action
• National Labor Relations Act
• Beatrice Webb