The process involves negotiations between an employer and a group of employees, often represented by a union, to determine terms and conditions of employment. These terms commonly include wages, working conditions, benefits, and other aspects of worker compensation and rights. A successful negotiation results in a binding agreement that covers all employees in the bargaining unit. For example, factory workers organizing to negotiate for better pay and safer working conditions with the factory owner exemplify this process.
This form of negotiation provides workers with a stronger voice than they would have individually, allowing them to address imbalances in power between employers and employees. Historically, it has been a key mechanism for improving labor standards, promoting fair treatment, and achieving economic security for workers. It contributes to workplace stability, reduced conflict, and a more equitable distribution of wealth. Its influence has been particularly evident in periods of significant industrial growth and labor unrest, serving as a means to resolve disputes and establish common ground.
