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Labor unions were formed to help workers
achieve common goals in the areas of wages,
hours, working conditions, and job security.
These issues still are the focus of the collective
bargaining process, though some new concepts
have become the subjects of negotiations. Table
1 lists the issues most often negotiated in union
contracts.


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Union contracts are usually bargained to remain
in effect for two to three years but may cover
longer or shorter periods of time. The process of
negotiating a union contract, however, may take
an extended period of time. Once the
management and union members of the
negotiating team come to agreement on the
terms of the contract, the union members must
accept or reject the agreement by a majority
vote. If the agreement is accepted, the contract
is ratified and becomes a legally binding
agreement remaining in effect for the specified
period of time.
If the union membership rejects the terms of
the agreement, the negotiating teams from
labor and management return to the bargaining
table and continue to negotiate. This cycle can
be repeated several times. If no agreement can
be reached between the two teams, negotiations
are said to have "broken down," and several
options become available.
Mediation is usually the first alternative when
negotiations are at a stalemate. The two parties
agree voluntarily to have an impartial third
party listen to the proposals of both sides. It is
the mediator's job to get the two sides to agree
to a settlement. Once the mediator understands
where each side stands, he or she makes
recommendations for settling their differences.
The mediator merely makes suggestions, gives
advice, and tries to get labor and management
to compromise on a solution. Agreement is still
voluntary at this point. The mediator has no
power to force either of the parties to settle the
contract, though often labor and management
do come to agreement by using mediation.
If mediation fails to bring about a settlement,
the next step can be arbitration, which can be
either compulsory or voluntary. Compulsory
arbitration is not often used in labor-
management negotiations in the United States.
Occasionally, however, the federal government
requires union and management to submit to
compulsory arbitration. In voluntary arbitration,
both sides agree to use the arbitration process
and agree that it will be binding. As in
mediation, an impartial third party serves in the
arbitration process. The arbitrator acts as a
judge, listening to both sides and then making a
decision on the terms of the settlement, which
becomes legally binding on labor and
management. Ninety percent of all union
contracts use arbitration if the union and
management can't come to agreement (Boone
and Kurtz, 1999).

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If the collective bargaining process is not
working as a way to settle the differences
between labor and management, both sides
have weapons they can use to bolster their
positions. One of the most effective union
tactics is the strike or walkout. While on strike,
employees do not report to work and, of course,
are not paid. Strikes usually shut down
operations, thus pressuring management to give
in to the union's demands. Some employees,
even though allowed to belong to unions, are
not allowed to strike. Federal employees fall into
this category. The law also prohibits some state
and municipal employees from striking.
During a strike, workers often picket at the
entrance to their place of employment. This
involves marching, carrying signs, and talking to
the media about their demands. The right to
picket is protected by the U.S. Constitution as
long as it does not involve violence or
intimidation. Problems sometimes arise during
strikes and picketing when management hires
replacement workers, called scabs or
strikebreakers, who
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Regular
Regular
Work Rest Periods Seniority
Compensation
Hours

Overtime Overtime Grievance

Evaluation
Compensation Work Procedures
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Hours

Union
Incentives Vacations Promotion
Membership

Dues
Insurance Holidays Layoffs
Collection

Pensions Recalls

need to cross the picket line in order to do the

jobs of the striking workers.
The boycott is another union strategy to put
pressure on management to give in to the
union's demands. During a primary boycott, not
only union members but also members of the
general public are encouraged to refuse to
conduct business with the firm in dispute with
the union.
Though it is rarely done, management may use
the lockout as a tactic to obtain its bargaining
objectives. In this situation, management closes
down the business, thus keeping union
members from working. This puts pressure on
the union to settle the contract so employees
can get back to their jobs and receive their
wages.
Management sometimes uses the injunction as a
strategy to put pressure on the union to give in
to its demands. An injunction is a court order
prohibiting something from being done, such as
picketing, or requiring something to be done,
such as workers being ordered to return to
work.

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Once a collective bargaining agreement is
settled and a union contract is signed, it is
binding on both the union and management.
However, disagreements with contract
implementation can arise and violations of the
contract terms can occur. In these cases, a
grievance, or complaint, can be filed. The
differences that must be resolved are usually
handled through a step-by-step process that is
outlined in the collective bargaining agreement.
The grievance procedure begins with a
complaint to the worker's immediate supervisor
and, if unresolved at that level, moves upward,
step by step, to higher levels of management. If
no resolution is found at any of these levels, the
two parties can agree to have the grievance
submitted to an impartial outside arbitrator for a
decision binding to the union and management.
Collective bargaining is a successful way for
workers to reach their goals concerning accept
able wages, hours, and working conditions. It al
lows workers to bargain as a team to satisfy
their needs. Collective bargaining also allows
management to negotiate efficiently with
workers by bar gaining with them as a group
instead of with each one individually. Though
traditional bargaining can be negative and
adversarial, it does produce collective
bargaining agreements between labor and
management. Partnership bargaining can lead
to increased understanding and trust between
labor and management. It is a positive,
cooperative approach to collective bargaining
that also culminates in contracts between labor
and management.
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