Definition
Good-faith process between an organization's management and a trade union representing its employees, for negotiating wages, working hours, working conditions, and other matters of mutual interest. To the management, this process presents (usually) one set of people to negotiate with; to the employees, it gives greatly enhanced bargaining-power. Collective bargaining is the fundamental principle on which the trade union system is based.
Usage Examples
- Their methods of collective bargaining are often so effective that any gridlock can shut down entire businesses for costly periods of time.Source: Collective Bargaining
The earliest labor unions were labeled as criminal organizations, but after their progressive decriminalization throughout the 19th century, prominent socialist Beatrice Webb coined the term “ collective bargaining ” in 1891.Source: Collective Bargaining- Once a company and its labor union settle on a mutually acceptable agreement, a final contract called a collective bargaining agreement (CBA) is signed and validated for a set period of time.Source: Collective Bargaining
In the United States, the formation of the American Labor Union in 1886 was the seminal event in the legalization of collective bargaining, and the 1926 Railway Labor Act, which required employers to bargain with unions, solidified the presence of unions in America.
Source: Collective Bargaining
