Small Business Glossary and Definitions

Collective Bargaining is a negotiation process conducted by employers and an organized group of employees, usually a labor union such as the Teamsters. It is designed to reach agreement on a contract covering all employees that addresses wage scales and rates, benefits, working hours, working conditions, safety and health, training, overtime, grievance procedures and other parts of the workers’ rights and compensation. The resulting contract often is called a collective bargaining agreement or collective employment agreement.

The 1935 National Labor Relations Act prohibits employers from discriminating against, harassing or terminating employees because of union membership or as retaliation for attempting to organize a union.