Collective Bargaining

Published Dec 28, 2022

Definition of Collective Bargaining

Collective Bargaining is a process of negotiation between employers and a group of employees (often worker unions) to determine the terms and conditions of employment. That means it is a process of negotiation between the two parties to reach an agreement on wages, working hours, benefits, and other conditions of employment.

Example

To illustrate this, let’s look at an example of collective bargaining between a company and its employees. The company is a small manufacturing firm with 100 employees. The employees are represented by a union, and they are looking to negotiate a new contract with the company. The union and the company sit down to discuss the terms of the contract. They negotiate on issues such as wages, working hours, benefits, and other conditions of employment. After several rounds of negotiations, they reach an agreement that is satisfactory to both parties. If they did not find an agreement, the workers could threaten to go on strike.

Why Collective Bargaining Matters

Collective Bargaining is an important tool for ensuring that employees are treated fairly and that their rights are respected. It allows employees to negotiate for better wages, working conditions, and benefits. It also helps to ensure that employers are held accountable for their actions and that they are not taking advantage of their employees. Finally, collective bargaining helps to ensure that there is a balance of power between employers and employees.