Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. 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.
The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a group of businesses, depending on the country, to reach an industry-wide agreement. A collective agreement functions as a labour contract between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management, or, in some countries such as Austria, Sweden and the Netherlands, by an employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions, grievance procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA).
The term "collective bargaining" was first used in 1891 by Beatrice Webb, a founder of the field of industrial relations in Britain. It refers to the sort of collective negotiations and agreements that had existed since the rise of trade unions during the 18th century.
In the United States, the National Labor Relations Act of 1935 made it illegal for any employer to deny union rights to an employee. The issue of unionizing government employees in a public-sector trade union was much more controversial until the 1950s. In 1962 President John F. Kennedy issued an executive order granting federal employees the right to unionize.
An issue of jurisdiction surfaced in National Labor Relations Board v. Catholic Bishop of Chicago (1979) when the Supreme Court held that the National Labor Relations Board (NLRB) could not assert jurisdiction over a church-operated school because such jurisdiction would violate the First Amendment establishment of freedom of religion and the separation of church of state.
The right to collectively bargain is recognized through international human rights conventions. Article 23 of the Universal Declaration of Human Rights identifies the ability to organize trade unions as a fundamental human right. Item 2(a) of the International Labour Organization's Declaration on Fundamental Principles and Rights at Work defines the "freedom of association and the effective recognition of the right to collective bargaining" as an essential right of workers. The Freedom of Association and Protection of the Right to Organise Convention, 1948 (C087) and several other conventions specifically protect collective bargaining through the creation of international labour standards that discourage countries from violating workers' rights to associate and collectively bargain.
In June 2007 the Supreme Court of Canada extensively reviewed the rationale for regarding collective bargaining as a human right. In the case of Facilities Subsector Bargaining Association v. British Columbia, the Court made the following observations:
The right to bargain collectively with an employer enhances the human dignity, liberty and autonomy of workers by giving them the opportunity to influence the establishment of workplace rules and thereby gain some control over a major aspect of their lives, namely their work… Collective bargaining is not simply an instrument for pursuing external ends…rather [it] is intrinsically valuable as an experience in self-government… Collective bargaining permits workers to achieve a form of workplace democracy and to ensure the rule of law in the workplace. Workers gain a voice to influence the establishment of rules that control a major aspect of their lives.
In Sweden the coverage of collective agreements is very high despite the absence of legal mechanisms to extend agreements to whole industries. In 2016, 84% of all private sector employees were covered by collective agreements, 100% of public sector employees and in all 90% (referring to the whole labor market). This reflects the dominance of self-regulation (regulation by the labour market parties themselves) over state regulation in Swedish industrial relations.
In the United States, the National Labor Relations Act (1935) covers most collective agreements in the private sector. This act makes it illegal for employers to discriminate, spy on, harass, or terminate the employment of workers because of their union membership or to retaliate against them for engaging in organizing campaigns or other "concerted activities," to form company unions, or to refuse to engage in collective bargaining with the union that represents their employees. It is also illegal to require any employee to join a union as a condition of employment. Unions are also able to secure safe work conditions and equitable pay for their labor.
At a workplace where a majority of workers have voted for union representation, a committee of employees and union representatives negotiate a contract with the management regarding wages, hours, benefits, and other terms and conditions of employment, such as protection from termination of employment without just cause. Individual negotiation is prohibited. Once the workers' committee and management have agreed on a contract, it is then put to a vote of all workers at the workplace. If approved, the contract is usually in force for a fixed term of years, and when that term is up, it is then renegotiated between employees and management. Sometimes there are disputes over the union contract; this particularly occurs in cases of workers fired without just cause in a union workplace. These then go to arbitration, which is similar to an informal court hearing; a neutral arbitrator then rules whether the termination or other contract breach is extant, and if it is, orders that it be corrected.
In 24 U.S. states, employees who are working in a unionized shop may be required to contribute towards the cost of representation (such as at disciplinary hearings) if their fellow employees have negotiated a union security clause in their contract with management. Dues are generally 1–2% of pay. However, union members and other workers covered by collective agreements get, on average, a 5-10% wage markup over their nonunionized (or uncovered) counterparts. Some states, especially in the south-central and south-eastern regions of the U.S., have outlawed union security clauses; this can cause controversy, as it allows some net beneficiaries of the union contract to avoid paying their portion of the costs of contract negotiation. Regardless of state, the Supreme Court has held that the Act prevents a person's union dues from being used without consent to fund political causes that may be opposed to the individual's personal politics. Instead, in states where union security clauses are permitted, such dissenters may elect to pay only the proportion of dues which go directly toward representation of workers.
The industrial revolution brought a swell of labour organizing in the US. The American Federation of Labor was formed in 1886, providing unprecedented bargaining powers for a variety of workers. The Railway Labor Act (1926) required employers to bargain collectively with unions.
In 1931, the Supreme Court, in the case of Texas & N.O.R. Co. v. Brotherhood of Railway Clerks, upheld the act's prohibition of employer interference in the selection of bargaining representatives. In 1962, President Kennedy signed an executive order giving public-employee unions the right to collectively bargain with federal government agencies.
The Office of Labor-Management Standards, part of the United States Department of Labor, is required to collect all collective bargaining agreements covering 1,000 or more workers, excluding those involving railroads and airlines. They provide public access to these collections through their website.
Only one in three OECD employees have wages which were agreed on through collective bargaining. The organisation for Economic Co-operation and Development, with its 36 members, has become an outspoken proponent for collective bargaining as a way to ensure that the falling unemployment also leads to higher wages.
In February 2011, a series of public employee protests began in the United States against proposed legislation which would weaken the power of labor unions. By March, eighteen states had proposed legislation which would remove some collective bargaining powers from unions, along with another five states which proposed legislation which would negatively affect unions. The protests occurred when public employee unions mounted protests against legislation proposed by Republican governors such as Scott Walker (Wisconsin), Rick Scott (Florida), Mitch Daniels (Indiana), Sean Parnell (Alaska), Rick Snyder (Michigan), John Kasich (Ohio), Paul LePage (Maine) and Jan Brewer (Arizona) which, among other things, would strip public employees of some collective bargaining rights as well as require higher employee contributions to pension and health care plans. The governors stated they needed these changes in order to cut state spending and balance the states' budgets. The protests began in Wisconsin, then spread to Indiana and Ohio, with unions around the country rallying to show their opposition to the proposed legislation. Several other states considered similar legislation. Virginia, North Carolina, and Texas prohibit formal
collective bargaining with public employees.Alliance of Motion Picture and Television Producers
The Alliance of Motion Picture and Television Producers (AMPTP) is a trade association based in Sherman Oaks, California that represents over 350 American television and film production companies in collective bargaining negotiations with entertainment industry trade unions that include, among others, SAG-AFTRA, the Directors Guild of America, the Writers Guild of America, West, the Writers Guild of America, East, the American Federation of Musicians, and the International Alliance of Theatrical Stage Employees.
The AMPTP was founded in 1924 as the Association of Motion Picture Producers, or AMPP. According to The Film Encyclopedia, "it was renamed the Association of Motion Picture and Television Producers in 1964 to reflect its merger with the Alliance of Television Film Producers [founded in 1951]. In 1975, two members of the Association, Paramount and Universal, left to form a new organization, the Alliance. In 1982, the Alliance and AMPTP. merged to form the Alliance of Motion Picture and Television Producers."As the entertainment industry's official collective bargaining representative, the AMPTP, like the Motion Picture Association of America (MPAA), is a key trade association for major film and television producers in the United States. The AMPTP currently negotiates 80 industry-wide collective bargaining agreements on behalf of over 350 motion picture and television producers. AMPTP member companies include the major motion picture studios (including Paramount Pictures, Sony Pictures, Twentieth Century Fox, Universal Pictures, Walt Disney Pictures and Warner Bros. Pictures), the principal broadcast television networks (including ABC, CBS, FOX and NBC), certain cable television networks, and other independent film and television production companies.
Nick Counter (March 21, 1940 - November 6, 2009) was President of the AMPTP from 1982 until March 2009.
Other former presidents and chairmen have included Joseph Schenck, Lew Wasserman, Jack Valenti and Richard Jencks.As of February 2019, the President is Carol Lombardini.Collaborative bargaining
Collaborative bargaining is a style of negotiation which recognises the interests of the other party and emphasises cooperation between them. It was especially promoted, practised and studied in the negotiations between school districts and teaching unions in the United States in the 1990s. It is compared and contrasted with more adversarial models of collective bargaining in which the parties may regard each other as enemies.Collective agreement
A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company (or with an employers' association) that regulates the terms and conditions of employees at work. This includes regulating the wages, benefits, and duties of the employees and the duties and responsibilities of the employer or employers and often includes rules for a dispute resolution process.Major League Soccer Players Union
The MLS Players Association, also referred to as the MLSPA, is the union of professional Major League Soccer players. The MLS Players Association serves as the exclusive collective bargaining representative for all current players in MLS.Master contract (labor)
A master contract or master agreement is a collective bargaining agreement which covers all unionized worksites in an industry, market or company, and which establishes the terms and conditions of employment common to all workers in the industry, market or company.Mexican labor law
Mexican labor law governs the process by which workers in Mexico may organize labor unions, engage in collective bargaining, and strike. Current labor law reflects the historic interrelation between the state and the Confederation of Mexican Workers, the labor confederation officially aligned with the Institutional Revolutionary Party (the Institutional Revolutionary Party, or PRI), which ruled Mexico under various names for more than seventy years.
While the law, on its face, promises workers the right to strike and to organize, in practice it makes it difficult or impossible for independent unions to organize while condoning the corrupt practices of many existing unions and the employers with which they deal.NBA Collective Bargaining Agreement
The NBA Collective Bargaining Agreement (CBA) is the contract between the NBA (the commissioner and the 30 team owners) and the NBA Players Association that dictates the rules of player contracts, trades, revenue distribution, the NBA Draft, and the salary cap, among other things. In June 2005, the NBA's 1999 CBA expired, meaning the League and the players' union had to negotiate a new agreement; in light of the 2004–05 NHL lockout, the two sides quickly came to an agreement, and ratified a new CBA in July 2005. This agreement expired following the 2010–11 season, leading to the 2011 NBA lockout. A new CBA was ratified in December 2011, ending the lockout.Little changed in terms of the salary cap between the 1999 and 2005 versions of the CBA. In exchange for agreeing to the controversial player age minimum, the players received a slightly higher percentage of the League's revenues over the course of the new agreement. Additionally, the League's maximum salary decreased slightly in comparison to the 1999 CBA. Under the 2011 CBA, the players will receive a lower percentage of league revenues.
In 2005, players received 57% of the income, and as of the new CBA, they are receiving about 49–50% of revenue. At that time, the next CBA discussion was set for ten years. or if necessary, in 2017. In 2016, the NBA and NBA Players Association met to work on a new CBA, which both sides approved in December of that year. This most recent agreement will start with the 2017–18 season and run through 2023–24, with a mutual opt-out after 2022–23.NFL Collective Bargaining Agreement
The NFL Collective Bargaining Agreement (CBA) is a labor agreement which reflects the results of collective bargaining negotiations between the National Football League Players Association (NFLPA) and National Football League (NFL) team owners. The labor agreement classifies distribution of league revenues, sets health and safety standards and establishes benefits, including pensions and medical benefits, for all players in the NFL. The first collective bargaining agreement was reached in 1968 after player members of the NFLPA voted to go on strike to increase salaries, pensions and benefits for all players in the league. Later negotiations of the collective bargaining agreement called for injury grievances, a guaranteed percentage of revenues for players, an expansion of free agency and other issues impacting the business of the NFL. The NFLPA and team owners have negotiated seven different agreements since 1968.
Most recently, in 2011, players and team owners reached a collective bargaining agreement after a player lockout and court-ordered mediation. The currently active agreement was ratified in 2011 and extends through the 2020 season, and includes changes to league revenue distribution, increases in player benefits and health and safety improvements including major limits on offseason, preseason and regular season practice activities.NHL Collective Bargaining Agreement
The NHL Collective Bargaining Agreement (CBA) is the basic contract between the National Hockey League (NHL) team owners and the NHL Players' Association (NHLPA), designed to be arrived at through the typical labour-management negotiations of collective bargaining. The most recent agreement, tentatively reached on January 6, 2013 after a labour dispute which cancelled 510 regular season games of the 2012–13 season, was ratified by the league's Board of Governors on January 9, 2013, as well as by the NHLPA membership three days later on January 12, 2013. The current CBA is a 10-year deal, the longest in NHL history, expiring after the 2021–22 season.National Football League Management Council
The National Football League Management Council is a non-profit association of clubs in the National Football League (NFL) that represents its members in negotiations related to the Collective Bargaining Agreement with the NFL Players Association. It is based in New York City and its chairman is the NFL Executive Vice President of Labor Relations, Harold Henderson.National Football League Players Association
The National Football League Players Association, or NFLPA, is the labor organization representing the professional American football players in the National Football League (NFL). The NFLPA, which has headquarters in Washington, D.C., is led by president Eric Winston and executive director DeMaurice Smith. Founded in 1956, the NFLPA was established to provide players with formal representation to negotiate compensation and the terms of a collective bargaining agreement (CBA). The NFLPA is a member of the AFL–CIO, the largest federation of unions in the United States.In the early years of the NFL, contractual negotiations took place between individual players and management; team owners were reluctant to engage in collective bargaining. A series of strikes and lockouts have occurred throughout the union's existence largely due to monetary and benefit disputes between the players and the owners. League rules that punished players for playing in rival football leagues resulted in litigation; the success of such lawsuits impelled the NFL to negotiate some work rules and minimum payments with the NFLPA. However, the organization was not recognized by the NFL as the official bargaining agent for the players until 1968, when a CBA was signed. The most recent CBA negotiations took place in 2011.
In addition to conducting labor negotiations, the NFLPA represents and protects the rights of the players; the organization's actions include filing grievances against player discipline that it deems too severe. The union also ensures that the terms of the collective bargaining agreement are adhered to by the league and the teams. It negotiates and monitors retirement and insurance benefits and enhances and defends the image of players and their profession.National Labor Relations Act of 1935
The National Labor Relations Act of 1935 (49 Stat. 449) 29 U.S.C. § 151–169 (also known as the Wagner Act after New York Senator Robert F. Wagner) is a foundational statute of United States labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining for better terms and conditions at work, and take collective action including strike if necessary. The act also created the National Labor Relations Board, which conducts elections that can expect employers to engage in collective bargaining with labor unions (also known as trade unions). The Act does not apply to workers who are covered by the Railway Labor Act, agricultural employees, domestic employees, supervisors, federal, state or local government workers, independent contractors and some close relatives of individual employers.Ohio Senate Bill 5 Voter Referendum, Issue 2
The Ohio Collective Bargaining Limit Repeal appeared on the November 8, 2011 general election ballot in the state of Ohio as a veto referendum. Senate Bill 5 (SB5) was repealed by Ohio voters after a campaign by firefighters, police officers and teachers against the measure, which would have limited collective bargaining for public employees in the state. The formal title of the proposal that this measure nullified is Senate Bill 5. Among other provisions, SB 5 would have prevented unions from charging fair share dues to employees who opt out. The process to place the referendum on the ballot for voters to decide was completed by supporters, as signatures were certified by the Ohio Secretary of State. The group behind the referendum effort was the political action committee We Are Ohio.
Senate Bill 5 would have impacted the state's 400,000 public workers, restricting their ability to strike and collectively bargain. The bill would have limited public employees to collectively bargain for wages, preventing them from collectively bargaining for health insurance and pensions. It would also have prohibited all public employees from striking and could have increased employee contributions for pensions and healthcare.
According to reports, the measure's language was decided on August 3, 2011. A "yes" vote was a vote to keep the law, while a "no" vote was a vote to repeal the law. Interests raised more than $30 million for the campaign.Right to Organise and Collective Bargaining Convention, 1949
The Right to Organise and Collective Bargaining Convention (1949) No 98 is an International Labour Organization Convention. It is one of eight ILO fundamental conventions.Its counterpart on the general principle of freedom of association is the Freedom of Association and Protection of the Right to Organise Convention (1949) No 87.Trade union
A trade union, also called a labour union or labor union (US), is an organization of workers who have come together to achieve many common goals, such as protecting the integrity of their trade, improving safety standards, and attaining better wages, benefits (such as vacation, health care, and retirement), and working conditions through the increased bargaining power wielded by the creation of a monopoly of the workers. The trade union, through its leadership, bargains with the employer on behalf of union members (rank and file members) and negotiates labour contracts (collective bargaining) with employers. The most common purpose of these associations or unions is "maintaining or improving the conditions of their employment". This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies.
Unions may organize a particular section of skilled workers (craft unionism), a cross-section of workers from various trades (general unionism), or attempt to organize all workers within a particular industry (industrial unionism). The agreements negotiated by a union are binding on the rank and file members and the employer and in some cases on other non-member workers. Trade unions traditionally have a constitution which details the governance of their bargaining unit and also have governance at various levels of government depending on the industry that binds them legally to their negotiations and functioning.
Originating in Great Britain, trade unions became popular in many countries during the Industrial Revolution. Trade unions may be composed of individual workers, professionals, past workers, students, apprentices or the unemployed. Trade union density, or the percentage of workers belonging to a trade union, is highest in the Nordic countries.Unfair list
An unfair list (strike list or do not work order) is a list compiled by trade unions of employers who have engaged in unfair or strike-worthy labor practices, including:
Refusing to engage in collective bargaining negotiations with a trade union
refusing to sign applicable collective bargaining agreements (including MBAs)
failing to participate in grievance and arbitration procedures
failing to abide by the final award of an arbitrator
violating labor lawsTypically, for purposes of solidarity, union members are prohibited by union bylaws from engaging in a contract for the rendering of services to entities which are listed on the unfair list.Union representative
A union representative, union steward, or shop steward is an employee of an organization or company who represents and defends the interests of her/his fellow employees as a labor union member and official. Rank-and-file members of the union hold this position voluntarily (through democratic election by fellow workers or sometimes by appointment of a higher union body) while maintaining their role as an employee of the firm. As a result, the union steward becomes a significant link and conduit of information between the union leadership and rank-and-file workers.
The duties of a union steward vary according to each labor union's constitutional mandate for the position. In general, most union stewards perform the following functions:
Monitor and enforce the provisions of the collective bargaining agreement (labor contract) to ensure both the firm and union worker are not violating the terms of the agreement.
Ensure that the firm is in compliance with all federal, state and local laws and regulations.
Represent and defend fellow workers whom the firm believes violated company policy or the terms and conditions of the collective bargaining agreement, often through the grievance process.
Communicate and disseminate official union policy, memos and directives to workers in the shop.
Popularize and promote union consciousness and values in the workplace.Union security agreement
A union security agreement is a contractual agreement, usually part of a union collective bargaining agreement, in which an employer and a trade or labor union agree on the extent to which the union may compel employees to join the union, and/or whether the employer will collect dues, fees, and assessments on behalf of the union.