Collective Bargaining: Understanding the Basics

Collective bargaining is when labor union members negotiate as a group with their employer for a labor contract. Federal labor laws require employers to negotiate with unions in good faith to come to an agreement on working terms and conditions.

Union workers should understand the collective bargaining process and how federal law protects their rights. This article covers the basics of collective bargaining. For more information about collective bargaining and legal help, talk to a labor and employment attorney.

What Is Collective Bargaining?

Collective bargaining is a negotiation process in which unions negotiate with employers on behalf of workers. Labor unions negotiate for better working conditions, higher wages, and healthcare benefits.

When workers vote to unionize, the union representative acts on behalf of the workers. The union and employer negotiate contract terms and conditions of employment. When the employer and union come to an agreement, they sign a collective bargaining agreement (CBA).

Workers have a right to join a union and engage in good faith negotiations with employers. The National Labor Relations Act (NLRA) is the federal law establishing collective bargaining rights. It is enforced by the National Labor Relations Board (NLRB). The NLRA applies to most private sector employers. There are other federal and state laws for public sector employees.

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The Role of Unions in Collective Bargaining

Union representatives act on behalf of union members in collective bargaining negotiations with the employer. When the employer and union member reach an agreement, they generally present the tentative agreement to the union members, who vote on whether to ratify the new contract.

By law, employers must negotiate with the collective bargaining unit in good faith. Employers must meet with the union at reasonable times and intervals. Employers cannot change working conditions without going through a recognized union.

When Bargaining Breaks Down

If the employer and union can’t come to an agreement on the mandatory subjects of bargaining, they reach an impasse at which further progress towards an agreement is unlikely. Under the NLRA, when the parties reach an impasse, the employer can stop following the prior contract and change the terms and conditions of employment.

The employer may falsely claim the negotiations are at an impasse as a show of bad faith. If the union doesn’t think the employer is bargaining in good faith, they can file charges with the NLRB. The NLRB can get a court order requiring the employer to go back to the bargaining table to continue negotiations in good faith.

When collective bargaining talks break down, the union can authorize a strike. A strike is a work stoppage by workers to incentivize the employer to come back to the bargaining table and negotiate in good faith. Workers can strike when the union and employer cannot come to an agreement or the employer commits unfair labor practices.

Strikes Are Protected Activity

Strikes are one of the most powerful actions a union can take to improve working conditions and they are a protected activity under the NLRA. Unionized workers have the right to strike unless their collective bargaining agreement has no strike/no lockout provisions in place (though workers could still strike after the agreement term ends). If the employer does not pay the striking workers, many unions authorize strike pay to help support those workers.

Striking workers can picket any of the employer’s locations, though striking is generally restricted to sidewalks, streets, and public rights-of-way. Striking workers can ask people crossing the picket line not to pass or hand out information. However, strikers cannot interfere with the normal flow of traffic or people entering and leaving the employer’s location.

Key Elements of a Collective Bargaining Agreement

The terms of a collective bargaining agreement depend on the type of job and current work contract. Common elements in a collective bargaining agreement include:

• Wages
• Hours and work shifts
• Working conditions
• Benefits and pensions
• Job security provisions
• Grievance procedures
• Arbitration and mediation
• Time off and holidays

Contract language should be clear and specific, like what the employer must do or the workers have the right to do. Once the parties agree on the terms of the collective bargaining agreement, they have to follow their contract obligations.

Neither party can change the terms of the agreement without consent of the other, or without extraordinary circumstances. After the contract term expires, the terms remain in place until the parties reach a new contract agreement, with some exceptions.

Strategies for Successful Negotiation

Collective bargaining negotiations are most successful when workers stand together. Unions have stronger bargaining power when union members are active, support the union, and understand the collective bargaining process. Unions have many tools to pressure the employer to negotiate in good faith to come to an agreement, including:

• Labor support worksite activities
• Rallies
• Work stoppages
• Customer and client support
• Community support
• Strikes

Negotiations can start with simple employment terms that the parties can agree on. The union may decide to compromise on some issues to win more important issues. Over the course of negotiations, unions can escalate actions to increase pressure. This can show union members, customers, and the public that the employer is not responding to union pressure. If negotiating tactics are still unsuccessful, the union can ultimately go on strike.

The NLRA requires giving the employer at least 60-days notice when the union wants to modify the terms of an agreement or terminate a contract. Unions should have a clear idea of what they want when going into negotiations.

Legal Protections in Collective Bargaining

The NLRA requires the employer to negotiate in good faith. Some employer negotiating tactics are not in good faith and may violate federal labor laws. Unfair labor tactics may include refusing to provide requested information, refusing to meet at reasonable times, or trying to negotiate with the employees directly without going through the union.

When workers start out trying to form a union, they may not understand all of their legal protections under state and federal law. For legal advice about collective bargaining for workers, talk to an employment and labor law attorney.