How The Collective Bargaining Process Works

People are often confused about how the collective bargaining process works.

It is essential to know what collective bargaining is.

Collective bargaining is a negotiation process between a set of workers made up of labor leaders and members of corporate managers who have the interest of their organization in the negotiation process.

The collective bargaining process is vital during employers’ contract renewal or when employers wish to effect changes in the work setting.

The result of this negotiation is the collective bargaining agreement.

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How The Collective Bargaining Process Works

The collective bargaining process is in full detail below:

Preparing For Negotiation

Arrangements will include issues, stakeholders, causes, costs, and impacts. It will bring confidence to the participating parties and result in effective negotiations. 

It is the first step in the process.

Negotiating negotiations involves preparing before negotiating with other parties to reach an agreement. 

Both parties in the negotiations should prepare themselves before going to the negotiations so there can be proper negotiation.

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Negotiation Process

The negotiation process means how the negotiation would take place, and the negotiation process is a negotiation process.

It will indicate which tasks to perform, who will perform them, and the sequence of tasks.

It could be a labor dispute or the need to create or renew a collective employment contract.

Employees and managers may also agree to regular news review meetings as they arise.

You should not expect that the chief executive of this organization will be present.

In the consultation process, there are two types of teams, one for management and the other for staff. It is important to discuss issues because the interests of both parties are involved.

On the staff side, the team consists of union officials; on the management side, the team may consist of workers, production managers, financiers, etc.

Union leadership will often review their membership to determine which are most important in future negotiations.

Have A Common Ground

In this process, the parties agree to the basic rules.

Before attending the discussion, they should identify the subject and the possible related topics.

They should collect information about these stories and should interview all detailed information.

The parties also agree on a style of negotiation — proposal negotiations or interest-based negotiations.

In the negotiation of the proposal, both parties draft the contract changes. In discussions based on interests, both parties bring problems to the table and resolve those issues amicably.

During the interview, they should avoid confusion.

Based on a thorough knowledge of the subject matter, the narrator can have a meaningful and effective discussion, and the solution to the problem can be very simple.

There is no specific strategy for discussing issues, depending on the situation, time, strength, and other market conditions. But the key point is to keep an eye on the whole package and its final results instead of quick gains or losses.

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Preparation Of Agreement

Once they resolve the negotiation issues, they will write them on paper. They should avoid legal terms as much as possible.

They will have to sign an agreement.

An Agreement Between The Management And Labor Union

In this process, the union then returns the agreement to its members.

If management and employees cannot agree, the employer may declare something wrong and apply a final proposal.

If the union does not agree, the NLRB will determine if there is a genuine conflict and force the employer to return to negotiations. The union could start a strike, with workers refusing to work until they reached an agreement.

Union members voted to accept the agreement.

Contract management is important for managers and employees because, under Section 29 of the Industrial Disputes Act of 1947, any person who breaches any term of the agreement will be liable to serve time for a term not exceeding six months or a fine or both.

What Does The Collective Bargaining Process Stand For?

The collective bargaining process leads to the collective bargaining result. 

The result typically defines employee benefits, work schedules, salaries, retirement benefits, shift length, sick leave, vacation time, healthcare services, insurance, work conditions, employment conditions, and other crucial terms of the agreement.

These terms are in three categories, namely;

Mandatory Subjects

Mandatory subjects include anything the law requires of an employer, such as salary, overtime, and occupational safety.

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Voluntary Subjects

Voluntary courses include non-negotiable legal issues such as union matters and decisions about board members. Illegal studies include anything that violates the law, such as discrimination in the workplace.

The collective bargaining agreement establishes the terms of employment for some time. 

Union members pay the costs of these representations in the form of unions.

The collective bargaining process may involve striking workers’ strikes or closing down workers if both parties have difficulty reaching an agreement.

Types Of Collective Bargaining Process

Not all types of joint ventures are the same. Collective bargaining can have several stages.

There are different types of collective bargaining processes:

1. Concessionary Bargaining

It is common during times of recession or recession.

As its name implies, legitimate negotiations are focused on union leaders making agreements to secure job security.

Union leaders may agree to waive certain benefits to ensure the survival of the working class and, ultimately, business.

2. Integrative Bargaining

Both employees and employers will lose and benefit from integrated negotiations.

Each team strives to benefit from a participatory negotiation, which is why it is a winning negotiation method.

Each side tries to look at the other’s situation and bring issues to the table to benefit both parties.

3. Productivity Bargaining

For this negotiation to work, both parties must agree to financial terms to increase productivity.

This type of negotiation focuses on the compensation and productivity of workers. Trade union leaders often use higher wages and compensation to improve workers’ productivity, resulting in higher profits and employer’s value.

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4. Distributive Bargaining

Unions must have a high level of power for the negotiation of distribution to be effective.

Distribution negotiations generally allow employees more than employers.

Higher membership means more power. If the employer refuses to accept union demands, it may call for a strike.

This process seems to benefit one financially by paying the other.

It can be due to the increase in bonuses, salaries, and any other financial benefits.

5. Composite Bargaining

Collective bargaining aims to develop an effective agreement that leads to lasting and harmonious relationships between employers and employees.

Composite bargaining focuses on other issues, such as working conditions, job security, and other business policies.

It may include hiring and shooting procedures as well as work ethic. Negotiation of a combination has nothing to do with compensation. 


The collective bargaining process is crucial between labor unions and employers.

It is essential to state what they want to reach an agreement clearly.

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