Collective bargaining is a process carried out by organizations that represent workers and business groups to agree on working conditions . When the parties reach an agreement, it is usual for them to sign an agreement.
It should be noted that a negotiation is the act and result of negotiating: a verb that can refer, among other issues, to addressing an issue to resolve it, specify it, etc. The collective , meanwhile, refers to the group or community.
It can be said that collective bargaining is carried out by unions and employers to establish labor agreements . The collective agreements resulting from the negotiations allow regulating the relationship between both parties and provide a regulatory framework.
Characteristics of collective bargaining
Collective bargaining is a voluntary mechanism that functions as a dialogue table to resolve labor conflicts and establish different guidelines in the workplace . What is agreed applies to all workers in the sector in question.
In this space for social dialogue , union representation defends labor rights, while the employer organization promotes the interests of employers. As a resource to demand the opening of collective bargaining or when they consider that the agreement is not being respected, workers can resort to a strike or a work stoppage.
It is important to consider that collective bargaining is guaranteed by the Constitution of the International Labor Organization (ILO) . Likewise, it is taken as a fundamental right that is part of freedom of association (that is, the possibility that workers have to group together and organize freely to defend their common interests).
Its importance
The collective agreements that derive from the negotiations are transcendental for the regulation of the responsibilities and rights of both parties in an employment relationship. In collective bargaining, working conditions are examined and agreements are sought on them so that relationships develop in harmony.
For all workers involved in collective bargaining, the process is key to safeguarding their rights and achieving improvements . For entrepreneurs, meanwhile, the procedure makes it possible to provide stability to production conditions .
The collective bargaining program usually includes points such as minimum wage, extension of the working day, health at work and vocational training. An attempt is also made to establish principles such as equal opportunities and non-discrimination .
Types of collective bargaining
Four types of collective bargaining are recognized in the ILO conventions . Collective bargaining by activity generates agreements that apply to all companies in a sector (such as the pharmaceutical industry or metallurgy, to mention two possibilities).
Collective bargaining by company , on the other hand, occurs between unions and employers within a specific company. If collective bargaining is territorial , its effects have influence in a region, while if collective bargaining is national , its scope extends to the entire territory of the nation.
Step by step
The development of collective bargaining involves the implementation of a series of steps. These phases are successive.
There is a first stage that, in reality, precedes the negotiation itself: preparation . In this instance the parties determine which points they intend to address and with what objectives. Generally, labor law experts intervene in preparatory actions (that is, with extensive knowledge about the labor legislation in force).
Then comes the development itself . Unions and employers meet to present and defend their respective positions. In the process, offers and counteroffers are made until an agreement is reached.
Finally, the collective bargaining is completed with its closure, which usually consists of the signing of the collective agreement . This document includes what was determined in the conversations.
When collective bargaining fails and there is no agreement, union pressure for workers to get what they want can include social mobilization with public demonstrations, pickets and blockades. It is possible that the State has the power to dictate mandatory conciliation through the Ministry of Labor or another body, forcing the parties to abide by certain provisions.
Examples of collective bargaining
Suppose that the two unions that represent workers in the oil industry raise the need to improve working conditions . Thus, they begin collective bargaining with the federation that brings together companies in the sector. In the absence of an agreement, the unions begin to take forceful measures, such as strikes and road closures. Faced with this reality, the government dictates mandatory conciliation and urges the parties to behave with a good willingness to put aside differences. Weeks later, and after a review of the positions, the collective bargaining concludes with an agreement that is reflected in a new labor agreement .
Another example of collective bargaining is the dialogue process that the unions that represent public school teachers establish with the government of a province. The teachers demand a salary increase above inflation, a request that is finally accepted by the provincial management and the situation is resolved without conflict.