Glossary

Small Business Glossary and Definitions

What is Good Faith Bargaining?

Good Faith Bargaining between employers and employees, particularly unions, is a duty for both parties to negotiate terms of employment in a fair and reasonable manner. Key factors that indicate good faith in bargaining are: a willingness to meet and negotiate, consider and respond to proposals offered by either side, agree to negotiate solely with designated representatives, and agree not to undermine the process or the representatives of the process.

The concept of good faith bargaining is part of the National Labor Relations Act (NLRA) and violators can be fined, subject to administrative orders, and/or ordered to provide financial reimbursement when appropriate.