Collective Bargaining

A collective bargaining agreement (CBA), also called a collective agreement or labour contract, is the written agreement resulting from collective bargaining negotiations.

Collective Bargaining is the legally-recognised negotiation process between an employer and a labour union to reach agreement on wages, hours, benefits, and working conditions, governed in the US by the National Labor Relations Act (NLRA, 1935) and administered by the NLRB, producing a Collective Bargaining Agreement (CBA) that functions as the labour contract for a defined period.

The legal framework: NLRA in the united states

• National Labor Relations Act (NLRA), 1935. Also known as the Wagner Act. Establishes federal policy of encouraging collective bargaining, protects employee rights to organise, requires employer good-faith bargaining, and creates the NLRB.
• Section 7 rights. Employees have the right to self-organisation, to form or join unions, to bargain collectively, and to engage in concerted activities for mutual aid or protection.
• Section 8(a) unfair labor practices. Prohibits employer interference with Section 7 rights, discrimination against union members, retaliation, and failure to bargain in good faith.
• Section 8(d) duty to bargain. Defines the duty as meeting at reasonable times and conferring in good faith on wages, hours, and other terms and conditions of employment.
• Section 9 representation. Establishes how unions become certified as exclusive bargaining representatives, typically through NLRB-supervised elections.
• Taft-Hartley Act (1947). Amended NLRA; added union unfair labor practices, allowed states to enact ‘right-to-work’ laws, restricted certain union activities.

Mandatory, permissive, and prohibited subjects of bargaining

The collective bargaining process

1. Recognition and certification. Union certified through NLRB election (typically 30% showing of support to file; majority vote to win).

1. Preparation. Both sides develop priorities, gather data, build negotiating teams, set authority levels.
2. Opening proposals. Parties exchange initial proposals, often deliberately ambitious to leave room for compromise.
3. Bargaining sessions. Series of meetings, often weekly or biweekly during active negotiation.
4. Information requests. Union has right to relevant information for bargaining (financials in some cases, workforce data, benefit costs).
5. Tentative agreements. Parties reach agreement on specific provisions, marking them tentatively agreed.
6. Mediation. If impasse approaches, Federal Mediation and Conciliation Service (FMCS) provides neutral mediation.
7. Strike or lockout. Where parties cannot agree, union may strike or employer may lock out workers.
8. Tentative agreement (TA). Comprehensive deal reached; subject to ratification.
9. Ratification vote. Union members vote on the tentative agreement; rejection sends teams back to bargaining.
10. Agreement and implementation. Signed CBA effective for term (typically 3 years).

Good-faith bargaining duty

Section 8(a)(5) of the NLRA requires employers to bargain in good faith with the certified union representative. Key factors the NLRB considers: – Meeting at reasonable times and places – Producing requested relevant information – Exchanging proposals with genuine consideration of counter-proposals – Sending representatives with actual bargaining authority – Sincere intent to reach agreement (though not required to make concessions)

Recent trends: the 2022-2025 collective bargaining revival

• UAW 2023 strikes. Strikes against Ford, GM, and Stellantis resulted in approximately 25% wage increases over the contract term, restoration of cost-of-living adjustments, and elimination of multi-tier wage structures.
• Hollywood 2023 strikes. SAG-AFTRA and Writers Guild strikes over streaming residuals and AI use produced settlements addressing both issues.
• Amazon, Starbucks, Apple organising. Amazon Labor Union won at Staten Island (2022); Starbucks Workers United won at hundreds of stores; first Apple Retail union certified in 2022.
• AI as bargaining subject. AI use and worker AI training rights are emerging as bargaining topics, featured prominently in WGA 2023 settlement.
• Union approval rating. US public approval reached approximately 70% in recent polling, highest since the 1960s.

International comparison

• UK. Trade Union and Labour Relations (Consolidation) Act 1992; ACAS conciliation; voluntary recognition common; strong union role in transport, healthcare, education.
• Germany. Strong sector-level bargaining (Flächentarifvertrag) plus works councils (Betriebsrat) providing co-determination.
• Scandinavia. Sector-level bargaining covers most workers; high union density; deeply embedded bargaining culture.
• Australia. Enterprise bargaining under Fair Work Act 2009; significant updates under Fair Work Closing Loopholes Acts 2024.
• ILO standards. Convention 98 (Right to Organise and Collective Bargaining, 1949) is a core labour standard.

See also Code of Practice for the ACAS Code on Disclosure to Trade Unions, Alternate Dispute Resolution for ACAS conciliation context, Bonus as a frequent bargaining subject, and Casual Employment for non-union workforce context.

Frequently asked questions