Collective bargaining
Collective bargaining is negotiation between employers and workers' organisations over pay, working conditions and employment relations.
Negotiations can cover wages, working time, leave, training and procedures for handling workplace disputes. The resulting collective agreement may set terms for a group of employees rather than leaving each person to negotiate every condition individually. The International Labour Organization describes bargaining as a process involving an employer or employers' organisation and one or more workers' organisations.
The institutions and legal effect differ between countries. An agreement may cover a particular employer, occupation or wider sector, depending on the local system. When reading a job offer, ask whether an agreement applies and which employee group includes the role. A reference to a pay grade or an annual increase is easier to assess when you can read the relevant agreement and its dates. Coverage should be confirmed rather than inferred from the company's name.
Example
An advertised maintenance role refers to a collective agreement. The applicant asks for the current agreement and checks the role's pay grade, normal hours and overtime provisions.
What to check
- Which agreement and employee category apply to this position?
- What does it say about pay progression, hours and leave?
- When does it expire or come up for renegotiation?