Collective bargaining is a decisive process where the union and employer exchange proposals, share ideas, solve problems, and reach a written agreement. This occurs when an existing contract is about to expire or when a new bargaining unit is being organized.
The resulting contract is legally binding and known as the Collective Bargaining Agreement (CBA). Each round of negotiations allows the parties to revisit existing agreements.
Although there are many local variations, the collective bargaining process commonly unfolds in the following manner.
Preparing for Union Negotiations
It is extremely important to prepare for union contract negotiations. According to the National Labor Relations Act (NLRA), you are legally obligated to bargain in good faith with the union. Since the process can be challenging, it's crucial to take proactive steps ahead of time. This includes identifying areas for improvement, preparing for potential proposals, and forecasting costs to position your organization for success. Keep in mind that the union is also preparing for negotiations to showcase its value to employees. Therefore, proactive preparation is essential for employers to effectively navigate negotiations and minimize potential risks.
Assembling a Winning Negotiation Team
Negotiation is a fascinating process with no legal obligation to finalize a mutually agreeable contract. Good faith bargaining is essential. The initial step involves forming a well-prepared negotiating team. Team members should comprehend their duties and responsibilities. The team typically comprises the following individuals:
- One or more labor professionals, such as a labor law attorney and certified labor relations professional, if available – these individuals know the ins and outs of bargaining and can assist with any compliance issues.
- A human resources representative who can assist with payroll, benefits, and other HR related discussions.
- An executive overseeing the operation.
- A senior financial expert who aids in determining the actual cost of any changes.
- A frontline supervisor who can provide firsthand knowledge of the employee experience and the real-world impact of contract requirements.
Once the negotiations team is in place, it's time to evaluate organizational and employee needs and transform them into impactful discussion points.
Conducting Union Negotiations
Negotiations typically span over several days and involve multiple rounds of bargaining. Some contract provisions remain consistent from contract to contract, while others, such as salary, are renegotiated with each new contract. Both parties may also make changes to certain sections, and either side may introduce new negotiation topics. Both parties should also explain the reasoning behind their proposals and counterproposals. Taking detailed notes during negotiations is essential to ensure that all parties have a clear understanding of the proposals and counterproposals being presented. It's also crucial to obtain signatures from all parties on agreed-upon language.
Economic vs Non-Economic Items
In union contract negotiations, there are two types of items discussed: economic and non-economic. Economic items involve costs for the organization and/or its employees, while non-economic items relate to issues concerning management rights and obligations, as well as leadership and employee behaviors. Separating the economic and non-economic items helps move the process along, ensuring that time is not spent on language that will not be changed.
What Subjects Can Be Bargained?
State law and court cases determine what can be bargained during collective bargaining negotiations. The classification of bargaining subjects generally falls into three categories:
- Mandatory Subjects: primarily concern wages, hours, and working conditions. Any adjustments to employee salaries, working hours, and safety protocols fall under mandatory subjects. By law, both parties are obligated to engage in discussions and work towards an agreement on these issues.
- Permissive Subjects: Both parties have the opportunity to negotiate on these issues yet are not bound to do so. These include topics such as the structure of the bargaining unit, the procedures for handling grievances, and other ancillary aspects of employment relations. While these matters can be discussed, there is no obligation for either party to enter negotiations concerning them.
- Prohibited Subjects: Some issues cannot be legally negotiated as they are outside the scope of collective bargaining, such as changes to the legal minimum wage or federal employment regulations.
The content of mandatory, permissive, or prohibited subjects may differ by state and can be influenced by state statutes and judicial interpretations. Courts frequently intervene to define these boundaries, particularly when disagreements arise regarding the scope of bargaining.
Whether at the negotiating table or during the life of a contract, parties have the opportunity to craft a memorandum of understanding (MOU) addressing a specific issue. An MOU is beneficial as it enables mutually agreeable resolutions to new or unanticipated matters that hold significance for both the union and the employer.
What Does Ratifying the Contract Mean?
When the union and employer teams reach a tentative contract agreement, they review it with their respective groups. The union holds a ratification meeting where employees ask questions and offer opinions. They then vote on the agreement by secret ballot. If both sides approve, a new collective bargaining agreement is established. If the agreement is rejected by either party, negotiations continue for a new tentative agreement.
If the parties are unable to reach an agreement, state law usually dictates the process for resolving the dispute. Typically, the parties have the option to use mediation, arbitration, and/or resort to a strike or lockout in order to come to an agreement. Strikes (and lockouts) are uncommon in most industries, but they are allowed in several states.
The Redstone GCI HR Team is well-equipped to identify any gaps in your current contract and provide valuable assistance in preparing for negotiations with comprehensive understanding of unionization you can be confident in their ability to guide you through these critical processes.
Senior Managing Consultant
Hibah joined Redstone Government Consulting, Inc. in 2023 with a wealth of progressive human resources experience in the federal government contracting industry. She provides HR consulting services to our customers on a vast array of issues, to include Service Contract Act, negotiations and administration of Collective Bargaining Agreements, resolving complex employee relations issues, conducting investigations, providing policy and procedure development and guidance, HRIS advisement and other HR-related compliance initiatives. Hibah stays abreast of the various requirements of the Department of Labor and, of great importance to government contractors, the Office of Federal Contract Compliance Programs, as well as other federal and state regulations impacting human resources.
Professional Experience
Prior to joining Redstone Government Consulting, Inc. Hibah served over 11 years in various HR roles within government contracting. She started her career as a Program Assistant to support proposal development and contract bidding. She soon transitioned to the HR department where she began as a Recruiter and grew into a Sr. HR Business Partner. During this time, she worked on the full employment life cycle from recruiting, onboarding, policy development, job descriptions, employee investigations and off boarding. Her primary focus became compliance and administration of SCA contracts and Collective Bargaining Agreements, to include negotiating, reviewing trends and employee relations. She supported executive leadership while working closely with management and employees to improve work relationships, build morale, and increase productivity and retention.