Collective bargaining

Before you read

Key terms

Match the words with their definitions.

1) collective bargaining	a) actions taken by unions in an attempt to influence management to adopt the union viewpoint in a collective bargaining situation
2) preparation	b) a temporary stoppage of work by employees which lasts until management accepts union demands
3) labour tactics	c) a labour tactics generally used in conjunction with a strike, involving positioning one or more union members at the entrance of a struck workplace to stop or make difficult any entry to the workplace
4) tentative agreement	d) actions taken by management in an attempt to influence unions to adopt the management viewpoint in a collective bargaining situation
5) strike	e) the step of collective bargaining when both union and management negotiators formulate their demands and concessions
6) picketing	f) a refusal by management to allow workers to work by keeping them out of the workplace
7) boycotting	g) a court order prohibiting or requiring action on the part of someone
8) management tactics	h) the process by which employees, through the union or association representing them, negotiate a labour agreement with their employer
9) lockout	i) an organization formed by employers to help neutralize the influence of unions
10) injunction	j) a labour tactic wherein union members refuse to purchase products from companies that are giving a union difficult times
11) association	k) the step of collective bargaining when both union and management draft a preliminary agreement or statement which describes their settlement

Think ahead

Collective bargaining is a complicated process. In your opinion, what steps does it comprise?

Text 7.2. Read the text and describe each step of the collective bargaining process.

What is Collective Bargaining?

Collective bargaining is the process by which employees, through the union or association representing them, negotiate a labour agreement with their employer. The three main steps in the collective bargaining process are preparation, bargaining and tentative agreement.

Preparation. In this step both union and management negotiators formulate their demands and concessions. The union attempts to pinpoint what it would like to have from management in such areas as wages and job seniority. Management attempts to define limits in giving concessions to the union; limits which will enable the organization to maintain a reasonable level of profit. Each side prepares independently of the other.

Bargaining. Once management and labour have prepared their demands and concessions, they begin the actual bargaining. At this stage the two sides come together in a face-face meeting, usually around a large table. ( You will often hear newscasters report that both sides are ‘at table’ or that all the issues have been ‘put on table’.) In this second step of the collective bargaining process, both management and unions attempt to follow the bargaining plans they outlined during the preparation phase. Essentially, management and labour, in a spirit of compromise, try to achieve their individual objectives.

Tentative agreement. If both sides bargain satisfactorily during the bargaining phase, they draft a preliminary agreement or statement which describes their settlement. This means that management can meet enough of the union’s demands to satisfy the union negotiators while still maintaining a reasonable level of profit. This agreement must then be presented to the union membership for a vote. If the union membership votes to accept or ratify this settlement, the settlement becomes the collective bargaining agreement or contract under which both management and the union must operate. If, however, the union membership votes to reject the settlement, both management and the union representatives must return to the bargaining table to draft another tentative agreement, which again must be presented for union membership approval. This basic process continues until the membership ratifies an agreement which then becomes the contract.