The Foundation of Workplace Democracy: Collective Bargaining Law

Collective bargaining is a foundational element of US labor and employment relations, enabling working people, often through a labor union, to negotiate contracts with their employers. This process regulates key employment terms, including wages, hours, benefits, and working conditions. Far more than a simple negotiation, it is a legally protected right aimed at fostering a balance of economic power in the workplace.

The Cornerstone: The National Labor Relations Act (NLRA)

The primary federal law governing private-sector collective bargaining is the National Labor Relations Act (NLRA), often called the Wagner Act, passed in 1935. This statute explicitly established collective bargaining as a policy of the United States and grants employees the fundamental right to organize, form, or join a union, and to engage in “concerted activities” for mutual aid and protection.

The Duty of Good Faith Bargaining

The NLRA imposes a crucial obligation on both employers and the union: the duty to bargain in good faith. This does not mandate that either party must agree to a proposal or make concessions, but it requires them to meet at reasonable times, consider proposals, and respond in a timely and sincere manner with a genuine desire to reach an agreement.

Subjects of Bargaining: Mandatory, Permissive, and Illegal

Negotiations revolve around three categories of subjects:

Category	Description	Examples
Mandatory	Subjects that must be negotiated if proposed by either party, and a party can bargain to impasse over them.	Wages, hours of work, overtime, holidays, sick leave, seniority, and grievance procedures.
Permissive	Subjects that may be negotiated if both parties agree, but a party cannot insist on them to the point of impasse.	Internal union affairs or management’s core entrepreneurial decisions.
Illegal	Subjects that violate the NLRA or any other law, and cannot be negotiated over.	Proposals for discriminatory hiring practices or a “closed shop”.

The Collective Bargaining Agreement (CBA)

The successful outcome of the collective bargaining process is the Collective Bargaining Agreement (CBA), which is a legally enforceable written contract between the employer and the union. The CBA sets the terms of employment for all employees within the defined bargaining unit, and it typically remains in effect for a specified period, often three years.

Summary of Legal Compliance for Collective Bargaining

For both management and labor, understanding the legal boundaries set by the NLRA is paramount. It ensures adherence to the duty to bargain, protects employee rights, and provides a clear framework for conflict resolution.

1. The NLRA grants private-sector employees the fundamental right to engage in collective bargaining through their chosen representative.
2. Both parties have a legal duty to bargain in good faith over mandatory subjects like wages and hours, though they are not required to reach an agreement.
3. The resulting Collective Bargaining Agreement (CBA) is a legally binding contract defining the terms of employment for the bargaining unit.
4. Violations of these rights or duties can lead to an Unfair Labor Practice (ULP) charge filed with the NLRB.

---

Frequently Asked Questions (FAQ) About Collective Bargaining

Q1: What is a “Bargaining Unit?”

A: A Bargaining Unit is a specified group of employees that the NLRB (or relevant state agency) has determined is appropriate to be represented by a union for the purposes of collective bargaining. All employees in this unit, regardless of union membership, are covered by the resulting CBA.

Q2: What happens if the parties reach “Impasse?”

A: Impasse is the point in negotiations where the parties determine that no further progress can be made toward an agreement despite good faith efforts. At this point, the employer may, under certain conditions, implement the terms of its final offer, provided the offer was previously presented to the union.

Q3: Are public sector employees covered by the NLRA?

A: No. The NLRA covers most private-sector employees. Public sector employees (federal, state, and local government workers) are typically covered by separate federal or state laws that govern their right to organize and bargain collectively.

Q4: Can an employer refuse to negotiate a specific topic?

A: An employer must negotiate any mandatory subject if proposed. They may refuse to negotiate permissive or illegal subjects. Refusing to bargain over a mandatory subject is generally a violation of the duty of good faith bargaining (a ULP).

Disclaimer: This article was generated by an AI model based on legal and regulatory information. It is intended for informational and educational purposes only and does not constitute legal advice. Labor and employment laws, particularly the application of the National Labor Relations Act (NLRA) and the National Labor Relations Board (NLRB) rulings, can be complex and are constantly evolving. Readers should consult with a qualified Legal Expert or Labor Expert for advice concerning their specific circumstances.

Collective Bargaining, National Labor Relations Act, NLRA, Labor Union, Collective Bargaining Agreement, CBA, Bargaining Unit, Good Faith Bargaining, Mandatory Subjects, Permissive Subjects, Unfair Labor Practice, NLRB, Arbitration, Grievance Procedure, Freedom of Association, Exclusive Representative, Right to Organize, At-Will Employment, Industrial Action, Strike