Contract Negotiations
Labor contract negotiations for a first contract are unpredictable. There is no guaranteed outcome.
First contract negotiations often take a long time. Bloomberg Law issued a report stating the average first contract in the private sector takes over 400 days to negotiate.
The parties are required to negotiate “in good faith.” But there is no requirement for either party to agree to a proposal made by the other. And there is no requirement mandating the parties ever reach an agreement on a contract.
Both parties are free to make proposals. Both sides can simply say “no.”
If the parties do reach an agreement, there is no guarantee that employees will end up with better wages, benefits, or terms/conditions of employment than they had prior to unionization. Union representation just means “representation” – not necessarily good or bad representation.
Here are some facts about collective bargaining:
Unions often make lots of promises to associates about what they might be able to get for coworkers at the bargaining table. The union cannot guarantee that any specific benefit or aspect of your employment with Sample Company will change for the better.
Some Frequently Asked Questions about Collective Bargaining:
Won’t it automatically mean more money or better benefits for me if the union is voted in?
No. Your pay and benefits would be subject to the negotiating process, and there are no guarantees in labor contract negotiations.
All a union can do is ask. Indeed, Section 8(d) of the National Labor Relations Act states that “[the bargaining] obligation does not compel either party to agree to a proposal or require the making of a concession.” All that is required is that the parties negotiate in what is called “good faith.” This simply means meeting at reasonable times with an open mind and listening to the proposals made by the other party; nothing less and nothing more. Logically, no one can predict the outcome of collective negotiations.
Can salary and benefits be reduced as a result of collective bargaining?
Yes, it is possible. To be clear, Sample Company cannot punish you in any way for deciding to support the union – that is illegal. However, negotiations are a two-way street. It is usually a give and take process. Accordingly, you may give up (or reduce) some area of compensation or benefit in order to get something else that you or the union may want.
How long would it take the union and Sample Company to negotiate a contract?
There is no timetable. Negotiations can take many months and sometimes even years before the parties reach either an agreement or an impasse (a legal deadlock). Sometimes, even after lengthy bargaining, unions and employers do not come to an agreement. There are many potential outcomes of collective negotiations.
What happens if Sample Company and the union do not agree on a collective bargaining agreement?
If an employer and union do not agree on a contract after engaging in good faith bargaining, the employer normally makes its final proposal, often called a “last, best, and final offer.” In response, the union normally will ask its members to vote on the proposal. If the members of the bargaining unit vote to accept (or “ratify”) the offer, then the parties have a collective bargaining agreement. If the members of the bargaining unit reject the offer, then there is no agreement. Under the Teamsters Constitution, that is automatic authorization to strike without a second vote.
If Sample Company and the union do not agree to terms at the bargaining table, what can the union do?
Unions utilize different tactics at the bargaining table. Ultimately, calling a strike is the only leverage a union has to put pressure on an employer to agree to its proposals.
There are no health, retirement or other benefits contributions by an employer during a strike. Employees would have to pay for 100% of the cost of their own health insurance for the duration of a strike.
A portion of all dues paid to the union is earmarked for strike benefit pay. However, unions are not under any obligation to pay striking employees out of their strike fund. In fact, during the most recent strike authorized by Teamsters, 150 drivers were on strike for 27 work days, and at its discretion, Teamsters chose not to pay any of its striking members.
How does the union prioritize proposals? What if I really care about my retirement, but someone else cares more about overtime or vacation time?
It is not the case that everyone gets their own individualized contract. Instead, it is one contract for everyone; that is what collective negotiations means. You may be six months from retirement and care most about your healthcare and retirement benefits, while someone on the other side of their career might care more about the opportunity for overtime and a high base wage. A collective bargaining agreement is nothing more and nothing less than a settlement of three sets of interests: the union’s, the employees’, and the company’s. Sometimes those interests overlap. Sometimes they do not.