Collective bargaining

A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.

[1] Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.

In the United States, the National Labor Relations Act of 1935 made it illegal for any employer to deny union rights to an employee.

In 1962, President John F. Kennedy issued an executive order granting federal employees the right to unionize.

The Organization for Economic Co-operation and Development, with its 36 members, has become an outspoken proponent for collective bargaining as a way to ensure that the falling unemployment also leads to higher wages.

[12] In June 2007 the Supreme Court of Canada extensively reviewed the rationale for regarding collective bargaining as a human right.

In the case of Facilities Subsector Bargaining Association v. British Columbia, the Court made the following observations: The right to bargain collectively with an employer enhances the human dignity, liberty and autonomy of workers by giving them the opportunity to influence the establishment of workplace rules and thereby gain some control over a major aspect of their lives, namely their work...

This system was established to resolve industrial disputes through the intervention of an independent third party, which could make legally binding decisions.

Over the years, this system underwent significant transformations, reflecting the changing priorities of different governments and the shifting balance of power between employers and unions.

The Act provides for "good faith bargaining"[17] requirements, ensuring that parties engage in negotiations sincerely with the aim of reaching an agreement.

However, union members and other workers covered by collective agreements get, on average, a 5–10% wage markup over their nonunionized (or uncovered) counterparts.

Instead, in states where union security clauses are permitted, such dissenters may elect to pay only the proportion of dues which go directly toward representation of workers.

[26] In 1962, President Kennedy signed an executive order giving public-employee unions the right to collectively bargain with federal government agencies.