Collective Bargaining Agreement Definition

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Collective Bargaining Agreement Definition

Collective bargaining is the engagement terms’ negotiation activities between an employer and a group of employees. The following are some of the terms of employment; working environment, basic salary, extra time bonuses, work and shift duration, work holidays, leaves, retirement and healthcare provisions.

A Little More on What is Collective Bargaining

Collective bargaining involves labour union representatives and organizations’ management engaging the unionized employees. The collective bargaining agreement (CBA) is the outcome of collective bargaining, and it develops employment’s rules for a determined period. In exchange of the representation, members fund the union through subscriptions. The collective bargaining process may involve opposed labour strikes or employee lockouts if the two sides face challenges in a settlement.

Unions exist in both the public and private sectors in the United States.  According to Bureau of Labor Statistics, 10.7% of U.S workers were union members by 2017, Public sector leads in their members joining unions with 33.4% of these unionized compared to only 6.5 % of workers in the private sectors. In the unions, workers categories all economic sectors and they include; grocery store employees, airline employees, professional athletes, teachers, auto workers, postal workers, actors, farm workers, steelworkers and others.

Unionized workers receive better wages than non-unionized workers at $1,041 and $829 respectively. Besides, there is significant fluctuation rates of unionization between States. In 2017, almost 23.8% of New York workers were unionized while less than 2.6% of South Carolina workers belonged to Unions.

Collective Bargaining Controversies

Collective bargaining has faced troubles with disagreements throughout the 21st century specifically in public-sector cases. Due to tax revenues financing wages for public sector employees, there have been claims of the practice resulting into excessive payments that burdens taxpayers by collective bargaining challengers. On the other hand, those supporting public-sector collective bargaining dismiss threats regarding overpayments as unrealistic and unreasonable. Public-sector employees covered by collective bargaining agreements earn a maximum 5% more than their non-unionized colleagues.

New Jersey’s Governors, Chris Christie and Scott Walker of Wisconsin staged battles with public-sector unions. In reducing state expenditure, Christie clashed New Jersey Education Association for streamlining teachers’ pensions. In June 2012, there were a lot of controversies in Walker’s attempts to restrict teachers’ collective bargaining rights in Wisconsin that its rivals succeeded in signatures’ gathering to compel an election removing him from the office.

References for Collective Bargaining Agreement

Academic Research on Collective Bargaining Agreement

  • A general theory of the collective bargaining agreement, Feller, D. E. (1973). Cal. L. Rev., 61, 663. The paper states that American law never developed a definitive of the rights generated by a collective bargaining agreement. Different analogies to other types of contractual relationships, majorly, the third party beneficiary contract has been proposed continuously with time sometimes to explain a specific outcome.
  • Absenteeism and the collective bargaining agreement: An empirical test, Dalton, D. R., & Perry, J. L. (1981). Academy of Management Journal, 24(2), 425-431. This paper avails information on the examination which studies organisational policy correlates that may impact the outcomes of employees’ absenteeism. The author examines causes of absenteeism and how job features impacts absenteeism, particularly the organisation size, job satisfaction, turnover, personality attributes and employee age. The outcome indicated a higher absenteeism rate in the organizations that remunerate operators a higher rate, allow sick advantages to accumulate and absence of not remunerate earned, but unused sick leave.
  • Freedom of Contract and the Collective Bargaining Agreement, Wellington, H. H. (1963). U. Pa. L. Rev., 112, 467.  The paper states that among the many competing objectives of labour policy, two have been regularly decreed and faithfully defended almost but never quite to the death by the Supreme Court of the United States. The two goals are industrial peace and freedom of contract, that is, collective contract. Both goals are entrenched deeply in both allegory and authenticity of national labour policy.
  • Works councils and collective bargaining in Germany: the impact on productivity and wages, Hübler, O., & Jirjahn, U. (2003). Scottish Journal of Political Economy, 5 0(4), 471-491. This paper explores the collaboration between establishment‐level codetermination and industry‐level collective bargaining in Germany. By bargaining model, we develop our major postulate: In institutions covered by collective bargaining agreements, works councils are more probable to be involved in productivity‐improving activities and less involved in rent‐pursuing activities than their colleagues in uncovered establishments. Our experimental analysis ratifies this proposition. The availability of works councils has a favourable impact on wages within the open group not to the extent to the closed group.
  • Bankruptcy and the Collective Bargaining Agreement–A Brief Lesson in the Use of the Constitutional System of Checks and Balances, Rosenberg, R. (1984). Am. Bankr. LJ, 58, 293. The paper states that the Supreme Court judgment in the case of NLRB v Bildisco &Bildisco, debtor in possession provoked a general outcry, a next legislative attempt to reverse the court holdings, an unanticipated and nearly indefinite delay in Congressional attempt to reconstitute the bankruptcy system. Therefore, the relatively small New Jersey partnership referred as Bildisco involved in the distribution of building supplies business was the starting point of another picketing of the continuing vitality of the check and balances system contained in the U.S constitution instead of a final resolution to continuous rising challenges facing employers and workers.
  • The decentralisation of collective bargaining: a literature review and comparative analysis, Katz, H. C. (1993). ILR Review, 47(1), 3-22. The paper outlines the evaluation that there is becoming more decentralization in bargaining structure in Sweden, Australia and former West Germany, Italy, United Kingdom and the United States even though in various ways and extent from state to state.  He then evaluated different assumptions that have been issued to justify the major pattern. A shift in bargaining power and diversification of both corporate and workers interests have played a part in this change, he concludes, that work re-organization continuous to be more effective. In addition, he examines the relationship and the effects of bargaining structure decentralization on the roles of central unions and corporate industrial relations staffs.
  • Macroeconomic performance and collective bargaining: an international perspective, Flanagan, R. J. (1999). Journal of Economic Literature, 37(3), 1150-1175. This paper examines association and the effects of collective bargaining system on microeconomic performance in industrialised countries. The impacts of bargaining level, coordination and corporatist institutional plan were subjected to the examination. The major experimental outcome resulted in being fragile, and much of the paper examines the issue of measurement and specification that explains the fragility. The paper concludes that complementarities between major organisations and between institutions and economic surroundings are probably of more significance for macroeconomics conducts than the impacts on each organisation.
  • Collective bargaining and the arbitrator, Fuller, L. L. (1963). Wis. L. Rev., 3. This paper discusses two disagreements regarding labour arbitration. The disagreements have surrounded the institution almost from its commencement. They touch on what may be referred to its permanent challenge. Previously they have been brought to renewed prominence by some legal judgments specifically some observations. The first disagreement is about the proper role of arbitrator, how he should conceive the function and conduct the hearing, what boundary he should enforce for himself. The second one is about the principles that should lead him to deduce the collective bargaining agreements and apply its establishment to the controversy in front of him.
  • Reasonable accommodation and the collective bargaining agreement under the Americans with Disabilities Act of 1990, Ervin, J. J. (1991). Det. CL Rev., 925. The paper States that American with Disabilities Act (ADA), also referred to civil right act for disabled is an expansive piece of legislation addressing problems of unemployment, public transportation, public accommodation and services offered by public institutions, and telecommunications. The major intention of Americans with Disabilities Act is to remove discrimination against individuals with disabilities and to allow them to attain economic self-independence and full participation in the society. Title I addressed to employment was main component of ADA.
  • The legal nature of collective bargaining agreements, Cox, A. (1958). Michigan Law Review, 57(1), 1-36. The paper states that law had fallen into disrepute in the world of labour relations because it failed to meet the needs of men. Collective bargaining agreements were negotiated and executed regardless of conventional legal sanctions. Grievance process and arbitration emerged into a complex and highly controlled private judicature. Many experienced and perceptive observers reasoned that the traditional agreements for commercial contracts should not apply to labour agreements. Labor Management Relations Act provided legal sanctions for collective bargaining agreements, and no one could reverse the decision.
  • The Collective Bargaining Agreement: Its Nature and Scope, Gregory, C. O. (1949). Lab. LJ, 1, 451. The Paper states that the entire procedure from the union’s demand to contract execution occurs in a complicated situation of federal and state labour laws. Management and unions are still attempting to catch up with these laws. All conflicts of interests must be controlled by laws of some nature. This is specifically true of the competition for power continuing in the labour relations arena. After 1937 powerful unions emerged where before they were unable to get footholds and they attained bargaining power like never before.

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