Collective bargaining is the process where a union negotiates with an employer to set the terms and conditions of work. The results of these talks are written into a collective bargaining agreement (CBA). These contracts usually cover wages, hours, benefits, and workplace rules.
Collective bargaining is a central right under federal law, giving employees a voice in shaping their work environment. While the law doesn't force either side to reach a deal, it does require both to negotiate in good faith.
The National Labor Relations Act (NLRA) is the main federal law that governs collective bargaining. It requires employers and duly elected unions to bargain over wages, hours, and other terms of employment.
Good faith bargaining means each side must be willing to meet, discuss, and consider proposals seriously. Neither side has to make concessions, but simply refusing to negotiate or refusing to move at all on key issues can violate the law.
Employers often have more information than unions about a company's finances or policies. To balance the scales, the National Labor Relations Board (NLRB) requires employers to share certain information when relevant to bargaining.
For example, if an employer says it cannot afford a wage increase, the union can request financial documents to confirm this claim. Employers may also need to provide data on pay and benefits so unions can bargain from an accurate starting point.
Not every workplace issue must be negotiated. But employers must bargain over "mandatory subjects," which are at the core of the employment relationship.
Such topics include:
Employers must notify the union before making changes in these areas if the union requests bargaining. Acting unilaterally in these areas is considered an unfair labor practice, which can trigger NLRB action and possibly a strike.
Some issues fall into a gray area. For instance, plant closures may or may not require bargaining depending on the employer's reasons. If the closure is about avoiding union wages, bargaining is required. If it is due to lost business or tax considerations, bargaining might not be required.
Employers cannot make changes to mandatory topics—such as pay or seniority rules—without first offering to bargain with the union. This rule applies whether the change helps or hurts workers.
Even across-the-board raises or better benefits must be negotiated first. This prevents employers from undermining the union by giving "gifts" directly to workers.
In practice, if a proposed change is positive, unions often agree quickly. But by seeking union approval first, employers avoid charges of unfair labor practices and potential legal battles.
Union membership in the private sector remains low, at under 6%. Yet recent years have seen a surge in union activity and public support. High-profile strikes at Amazon, Starbucks, and Hollywood studios in 2023–24 drew national attention. In 2024, a Gallup poll found 70% of Americans support unions, one of the highest levels in decades.
The NLRB has also taken a more aggressive stance in enforcing bargaining rights, reminding employers that delaying tactics, bad faith bargaining, or refusing to provide relevant information can all be violations of the NLRA.
Collective bargaining is designed to balance the power between employers and workers. Employers must bargain in good faith, share key information, and negotiate over core employment terms before making changes.
For workers, union representation provides a legal right to a seat at the table. For employers, following the rules avoids unfair labor practice charges and potential strikes.