Collective Bargaining

1. Define the term "collective bargaining" and list and describe four issues that are mandatory components of a collective bargaining agreement.

Collective bargaining can be defined as the process by which wage related issues, supplementary economic benefits, institutional issues, and administrative issues are negotiated and agreed upon by a union and employer for all employee that the union collectively represents (Budd, 11). Wages can be described as the amount of money paid for the basic wages as well as any differentials that occur because of shifts worked, over time rates, and cost-of-living allowances. This means that the bargain that is struck will ensure that the employees of the company that are represented by the union know the amount of money that they will be paid when they work different shifts. They also know that some shifts will be worth more money than other shifts because of the differential and know that if they work overtime; then they will be paid more. However, the unions, the union members, and the employers realize that the members will not simply work every day without getting sick or needing a day off. This is where the supplementary economic benefits that have been negotiated and agreed upon come into play. These benefits help the union member when they take vacation and get sick. They also help the member with health insurance plans (http://answers.mheducation.com/business/management/human-resource-management/labor-relations-and-collective-bargaining).

The third area that is in every collective bargaining is institutional issues. While many employers do not think about the quality of life for the employees outside of the work area, union representatives do. Employers may not want the union in the first place, and therefore would rather not have the membership be a condition of employment. Unions see this as a vital part of the negotiations that will protect the union members and allow them to know that their job is more secure than it would be without the membership being a condition of his or her employment. This is because the union members know that any new employees will have to be a member of the union or be willing to join the union in order to gain employment at the company. The institutional issues are, overall, related to any "rights and duties of employers, employees, and unions" (http://answers.mheducation.com/business/management/human-resource-management/labor-relations-and-collective-bargaining).

The final issue that is included, at least to some degree, in every collective bargain is administrative issues. This covers a wide variety of issues including how the employer can discipline the union members; dismiss the union members, what needs to be done at the place of employment to ensure that the union members are given a safe and healthy location to work in, and other topics. While these may not seem to be as important as the wages and the other economic benefits