Chapter 12, Problem 17AA

To determine

To evaluate: The kinds of issues addressed in collective bargaining negotiations.

Explanation of Solution

The kinds of issues addressed in collective bargaining negotiations are:

1. Compensation packages: During the collective bargaining process a key issue is how much the workers will be paid and what kind of benefits they will get. Factors that are generally discussed are how and when wage increases are made, what kind of benefits will be given to the workers, and how much each party will pay for the compensation costs. Such problems have an effect not only on the general welfare of union workers but also on how competitive the business can be over the contract. Achieving a balance usually takes into account both problems.
2. Workers rights: Unions may usually decide how workers will be treated in such cases, such as accidents, sexual harassment, and age discrimination or racial discrimination, arise on the job. The agreement typically lays out the complaint management process and a company's duty to manage those complaints. Many of these concerns are already governed by federal and state legislation, such as the National Labor Relations Act and the Equal Employment Opportunities Commission, but the union may wish to build on this legislation and seek new rights for its members.
3. Employer’s rights: There was a time when collective bargaining arrangements brought in terms that were so restrictive that employers could not easily resolve business issues. Employees slotted into a certain job classification would not be permitted to perform certain activities outside of their assigned duties, and this impeded the employer's ability to respond to changing business conditions and workloads. Employers have been able to negotiate working conditions that meet the needs of the employer, without automatically violating employee rights.

Economics Concept Introduction

Introduction: Collective bargaining is the current negotiating mechanism between workers and employer’s representatives to set down terms of jobs. Not only salaries, but hiring practices, layoffs, promotions, job duties, working conditions and hours, workplace training and termination, and compensation packages can be protected by the mutually agreed agreement.