Individual employees rarely negotiate terms as equals with large employers. Collective bargaining is the process in which unions and employers negotiate wages, hours, benefits, and working conditions on behalf of a group of workers.
Bargaining typically produces a written collective agreement that governs the employment relationship for a defined period. Both sides trade proposals, data, and sometimes economic pressure such as strikes or lockouts. Labor law in most countries sets rules for good-faith negotiation and for what may be bargained.
Successful bargaining balances worker security with organizational competitiveness. Relationships built during negotiations often shape day-to-day problem solving long after the contract is signed. When talks collapse, the costs fall on workers, companies, and sometimes the wider public.
- Negotiation between unions and employers
- Covers pay, benefits, and working conditions
- Produces binding collective agreements
- Regulated by labor law and good-faith rules
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