HR Glossary

Collective Bargaining

Collective bargaining is the process where a group of employees or members of a trade union meet with representatives from an organization to negotiate labor contracts which regulate working conditions.

what-is-collective-bargaining

Collective bargaining definition

Collective bargaining is the process where a group of employees or members of a trade union meet with representatives from an organization to negotiate labor contracts that regulate working conditions.

This collective bargaining model consists of workers submitting proposals that they consider ideal, but show a willingness to settle for less, and the management is willing to give more than what’s publicly acknowledged. Collective bargaining is most commonly practiced by blue-collar workers, even though it can technically be applied in any profession.

Steps of collective bargaining

1. Preparing: organizing a group of workers to represent the employee’s issues

2. Arguing: both sides argue on their part of the deal

3. Signaling: showing through different types of signaling if the proposal could be accepted or not

4. Proposal: one side makes a proposal in order to end the argument and reach an agreement

5. Packaging: structuring the proposal too tempting to refuse

6. Bargaining: identifying a common ground that facilitates a settlement between two parties, both of them trying to dilute the other side’s proposal

7. Closing: agreeing to the terms of the settlement

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