Definition of

Collective bargaining

Agreement

Collective bargaining seeks to promote workplace well-being.

Collective bargaining is a process carried out by organizations representing workers and employers' groups to agree on working conditions . When the parties reach an agreement, they usually sign an agreement.

It should be noted that a negotiation is the act and the result of negotiating: a verb that can refer, among other things, to dealing with an issue in order to resolve it, specify it, etc. The collective , meanwhile, refers to the group or community.

Collective bargaining can be said to be carried out by unions and employers to establish labour agreements . The collective agreements resulting from the negotiations allow the link between both parties to be regulated 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 upon applies to all workers in the sector in question.

In this space for social dialogue , the union representatives defend labour rights, while the employers' organisation promotes the interests of the 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 note that collective bargaining is guaranteed by the Constitution of the International Labour Organization (ILO) . It is also considered a fundamental right that forms part of freedom of association (i.e., the possibility that workers have to freely group and organize themselves to defend their common interests).

Union

Worker participation is key in collective bargaining.

Its importance

Collective agreements resulting from negotiations are essential for regulating 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 the group of workers involved in collective bargaining, the process is key to safeguarding their rights and achieving improvements . For employers, meanwhile, the procedure makes it possible to provide stability to production conditions .

The agenda of a collective bargaining agreement usually includes points such as minimum wage, length of working hours, occupational health and vocational training. Principles such as equal opportunities and non-discrimination are also attempted to be established.

Agreement

The implementation of agreements usually marks the closing of collective negotiations.

Types of collective bargaining

ILO conventions recognise four types of collective bargaining. 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).

Company-wide collective bargaining , on the other hand, occurs between unions and employers within a specific company. If collective bargaining is territorial , its effects have an impact on 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 actually precedes the negotiation itself: preparation . At this stage, the parties determine which points they intend to address and with what objectives. Generally, experts in labor law (i.e., with extensive knowledge of current labor legislation) intervene in the preparatory actions.

Then comes the actual development . Trade unions and employers meet to present and defend their respective positions. Offers and counteroffers are made in the process until an agreement is reached.

Finally, collective bargaining is completed with its conclusion, which usually consists of the signing of the collective agreement . This document contains what was determined in the conversations.

When collective bargaining fails and there is no agreement, union pressure to get workers what they want may include social mobilization with public demonstrations, pickets and blockades. The State may have the power to order compulsory conciliation through the Ministry of Labor or another agency, forcing the parties to abide by certain provisions.

Examples of collective bargaining

Let us suppose that the two unions representing workers in the oil industry raise the need to improve working conditions . They thus begin collective bargaining with the federation that brings together the companies in the sector. In the absence of an agreement, the unions begin to take forceful measures, such as strikes and roadblocks. Faced with this reality, the government orders compulsory conciliation and urges the parties to behave with a good disposition to put aside their differences. Weeks later, and after a review of the positions, the collective bargaining concludes with an agreement that is reflected in a new work agreement .

Another example of collective bargaining is the process of dialogue between unions representing public school teachers and the government of a province. The teachers demand a salary increase above inflation, a request that is finally accepted by the provincial administration and the situation is resolved without conflict.