Collective Bargaining
What does "Collective Bargaining" mean in law?
Collective bargaining is the process by which a labor union, acting as the exclusive representative of employees in a bargaining unit, negotiates with the employer over wages, hours, and other terms and conditions of employment. Under the National Labor Relations Act (NLRA), both the employer and the union have a mutual obligation to bargain in good faith, though neither party is compelled to agree to a proposal or make a concession. Mandatory subjects of bargaining include wages, benefits, work schedules, and grievance procedures, while permissive subjects (such as internal union affairs) may be discussed but cannot be insisted upon to impasse. In Alexander v. Gardner-Denver Co., the Supreme Court held that an employee's statutory right to a Title VII trial de novo is not foreclosed by prior submission of the claim to final arbitration under a collective bargaining agreement.
Definition
Collective bargaining is the process by which a labor union, acting as the exclusive representative of employees in a bargaining unit, negotiates with the employer over wages, hours, and other terms and conditions of employment. Under the National Labor Relations Act (NLRA), both the employer and the union have a mutual obligation to bargain in good faith, though neither party is compelled to agree to a proposal or make a concession. Mandatory subjects of bargaining include wages, benefits, work schedules, and grievance procedures, while permissive subjects (such as internal union affairs) may be discussed but cannot be insisted upon to impasse. In Alexander v. Gardner-Denver Co., the Supreme Court held that an employee's statutory right to a Title VII trial de novo is not foreclosed by prior submission of the claim to final arbitration under a collective bargaining agreement.
Example
A teachers' union negotiates a new three-year collective bargaining agreement that includes a 4% annual raise, smaller class sizes, and a binding arbitration clause for grievances.