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Collective bargaining

By February 27, 2018

A process of negotiation between companies and a group of employees directed to regulate working wages, working conditions, benefits, and other facets of employees’ compensation and rights for employees to procure employment. Representatives of a trade union to commonly present the employees’ interests. The collective agreements reached with these discussions set out training, working hours, earnings scales, health and safety, overtime, grievance mechanisms, and rights to take part in business or workplace affairs.
The union may negotiate with one company (who is typically representing a organization’s shareholders) or might negotiate with a bunch of companies, depending on the country, to achieve a industry-wide agreement. A collective agreement functions as a labor contract between an employer and one or more unions. Collective bargaining consists of the process of discussion between agents of a union and employers (generally represented by direction, or, in certain countries such as Austria, Sweden and the Netherlands, by an employers’ organization) in regard to the terms and conditions of employment of employees, such as salary, hours of work, working conditions, grievance processes, as well as the rights and obligations of trade unions. The parties frequently refer to the effect of the negotiation because of collective bargaining agreement (CBA) or as a collective labor agreement (CEA).

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