collective bargaining
Definition
Collective bargaining is the formal negotiation process where a group of employees, represented by a union, sits down with an employer to hammer out the terms of employment together. The two sides negotiate things like wages, work hours, benefits, and workplace safety rules, and whatever they agree to gets written into a binding contract called a collective bargaining agreement. This process gives workers more negotiating power than they would have going to their boss one by one.
Example
If the workers at your warehouse vote to form a union, you would be legally required to meet with their union representative and negotiate in good faith over their pay and working conditions before setting those terms yourself.
Watch Out
Once your employees are represented by a union, you cannot make unilateral changes to wages or working conditions without going through the bargaining process first, and ignoring this obligation can result in serious legal penalties.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.