Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.[1]
The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a group of businesses, depending on the country, to reach an industry wide agreement. A collective agreement functions as a labor contract between an employer and one or moreunions. Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management, in some countries such as Austria, Sweden and the Netherlands by an employers' organization) in respect of the terms and conditions of employment ofemployees, such as wages, hours of work, working conditions, grievance-procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA).
History
The term "collective bargaining" was first used in the middle of 1891 by economic theorist Beatrice Webb. However, collective negotiations and agreements had existed since the rise of trade unions during the 18th century.
The term collective bargaining itself was coined by a British labor historian named Mrs. Sidney Webb in 1891 (Hoffer). The National Railway Act and soon after the National Labor Relations Act made it illegal for any employer to deny union rights to an employee. Another step in this direction came in 1962 when president John F Kennedy