What Is Collective Bargaining?

Glossary

Collective bargaining is a crucial and often debated process that empowers employees across various industries to advocate for fair working conditions and terms of employment.

In this article, we will explore the definition of collective bargaining, its impact on various professions, and the advantages and disadvantages of this negotiation process. Additionally, we will outline key U.S. laws that influence employment terms and clarify the relationship between collective bargaining and labor unions.

Key Takeaways

Collective bargaining is the negotiation process between employees, often represented by unions, and employers to establish contracts and employment terms.
Many professions, including grocery store workers, teachers, and postal employees, are eligible to engage in collective bargaining.
While collective bargaining can enhance workplace conditions and clarify employee rights, it may also entail significant costs for both employees and employers.

What Is Collective Bargaining?

In This Article

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What Is Collective Bargaining?
Who Is Eligible for Collective Bargaining?
The Pros and Cons of Collective Bargaining
The United States Collective Bargaining Laws
Collective Bargaining and Unions
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What Is Collective Bargaining?

First introduced in 1891, collective bargaining refers to the process where a collective group of employees negotiates contracts and employment conditions with their employers, typically with the support of labor unions.

Negotiations may cover:

Employment conditions
Base salary
Benefits
Working hours
Overtime pay
Holidays
Leave and disability policies
Job safety regulations
And additional employment terms

The collective bargaining process involves negotiations between company management and labor unions. As of 2026, approximately 10.5% of U.S. workers are part of a union.

An agreement reached through this process is known as a collective bargaining agreement (CBA) and is generally valid for a specified duration based on the negotiation outcomes.

This process can be lengthy and may sometimes lead to labor strikes or employee lockouts if a consensus cannot be achieved.

Who Is Eligible for Collective Bargaining?

In the United States, unions exist in both public and private sectors. Unionization is notably more prevalent in the public sector, with around 35% of public workers being unionized compared to approximately 6% in the private sector. Typical professions that engage in collective bargaining include:

Grocery Store Workers: Represented by the United Food and Commercial Workers International Union (UFCW), this union supports 1.3 million workers across various sectors, including retail, meatpacking, food processing, hospitality, and agriculture.
Airline Employees: Aviation unions include those for air traffic controllers, airline pilots, and flight attendants, with multiple unions available depending on location and job function.
Professional Athletes: Unions such as those for the NHL, MLB, NFL, and NBA were established to protect athletes from exploitation and ensure fair compensation.
Teachers: Numerous teacher unions exist, the largest being the National Education Association, which represents public school teachers and faculty at various educational institutions.
Autoworkers: The United Auto Workers (UAW) represents workers in the automotive industry across the U.S. and Canada, negotiating on behalf of over 2,000 employers.
Postal Workers: The American Postal Workers Union (APWU) represents over 200,000 employees and retirees of the U.S. Postal Service across various divisions.
Actors: Unions like the Screen Actors Guild advocate for actors’ rights and protections in the entertainment industry.
Agricultural Workers: The National Farmers Union represents over 200,000 family farms, supporting farmers and ranchers in their economic welfare.
Steelworkers: The United Steelworkers (USW) union includes members from diverse industries, advocating for workers in metals, chemicals, and more.
Other Professions: There are numerous unions representing various trades, including electrical workers, engineers, writers, and office staff. Any employee has the right to unionize.

Union members often receive a salary markup of 5-10% compared to their nonunion counterparts, which helps to balance income disparities among skilled and unskilled workers.

Despite its benefits, collective bargaining can be contentious, particularly among public-sector workers. Since public employee wages are funded by tax revenues, some view collective bargaining as a potential source of excessive compensation burdens on taxpayers.

The Pros and Cons of Collective Bargaining

Collective bargaining presents both advantages and disadvantages:

Pros of Collective Bargaining

Empowers employees with a stronger collective voice.
Enhances workplace safety and conditions.
Clarifies rights for employees and responsibilities for employers.

Cons of Collective Bargaining

Increased costs for both employees and employers.
>Lengthy negotiations can hinder productivity and require time away from work.
Employers may feel compelled to accept agreements that could negatively impact their operations.

The United States Collective Bargaining Laws

In the U.S., around 75% of private-sector workers and 66% of public employees are eligible for collective bargaining, facilitated by a series of laws established in the late 19th and early 20th centuries.

1877: The Great Railroad Strike emerged in response to pay cuts, marking a pivotal moment in labor rights history.
1888: The Arbitration Act was enacted to create panels for investigating labor disputes, though it saw limited success.
1898: The Erdman Act promoted voluntary arbitration and prohibited discrimination against union activities.
1913: The Newlands Act aimed to address labor issues but was replaced by federal control in 1917.
1916: The Adamson Act established an eight-hour workday for certain workers.
1926: The Railway Labor Act was passed, which still impacts many transportation workers, including those in aviation.
1935: The National Labor Relations Act clarified collective bargaining rights for private-sector workers and established protections against employer coercion.

In 1962, President John F. Kennedy signed an executive order granting federal employees the right to unionize, solidifying collective bargaining as a fundamental worker’s right.

Collective bargaining rights are recognized by numerous human rights organizations and provide significant benefits to workers across various industries.

In 24 U.S. states, employees in unionized workplaces may need to contribute toward representation costs for disciplinary hearings, depending on the specific agreement.

Collective Bargaining and Unions

As you enter the workforce, understanding your rights as an employee is essential. These rights can vary by company, but most organizations outline employee rights in their contracts, which may include health benefits, holidays, working conditions, and other crucial aspects of your employment.

When a group of employees seeks to alter their employment terms collectively, they can negotiate more effectively with their employer than individuals acting alone. These groups are commonly referred to as trade unions or labor unions.

Joining a union can help protect the integrity of your profession and enhance safety standards while advocating for improved pay, benefits, and working conditions. Trade unions typically fund their operations through member dues, enabling them to provide legal support and negotiation resources.

Collective bargaining, therefore, serves as a fundamental mechanism for securing fair treatment and equitable conditions for workers across various sectors.

Glossary

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Author

Caitlin Mazur

Caitlin Mazur is a freelance writer at Zippia. Caitlin is passionate about helping Zippia’s readers land the jobs of their dreams by offering content that discusses job-seeking advice based on experience and extensive research. Caitlin holds a degree in English from Saint Joseph’s University in Philadelphia, PA.

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