What is it?
Negotiating the terms of employment between an employer and a group of workers.
How does it work?:
Collective bargaining refers to the process where workers negotiate as a group with their employers over terms of employment. This could involve negotiating wages, working conditions, benefits, and other aspects of workers’ compensation and rights. The aim of collective bargaining is to reach an agreement that both parties are satisfied with.
When is it useful?:
In a business context, collective bargaining is typically carried out by unions representing the employees. It’s a way for workers to have a voice and influence over their working conditions and compensation, rather than accepting whatever terms the employer sets. Employers also benefit from collective bargaining as it can lead to a more motivated and satisfied workforce, and it can help prevent strikes, litigation, and other labor disputes.
Real-World Impact:
A real-world example of this could be the automotive industry. In 2019, United Auto Workers (UAW), which represents around 150,000 employees at General Motors, Ford, and Fiat Chrysler, went on strike at General Motors plants across the U.S. The strike was part of the collective bargaining process, with UAW seeking better pay, benefits, and job security for its members. After lengthy negotiations, the strike ended with a new four-year contract that met many of the union’s demands.
How to Get Started:
Understanding the concept of collective bargaining is important for businesses that Empress works with, especially those with unionized workforces. Empress provides tools and services that can help businesses manage their relationships with employees and navigate the complexities of labor negotiations. This can result in a more harmonious workplace, improved worker satisfaction, and ultimately, a more successful business.
Get the Empress Edge:
While collective bargaining is often associated with labor unions and large corporations, it can also be relevant in smaller businesses and for non-unionized workers. In recent years, there has been a growing trend towards collective bargaining in the gig economy, with independent contractors coming together to negotiate better terms with platform companies.