What is Collective Bargaining?
Collective Bargaining in Municipalities: Navigating Labor Relations and Agreements
Many municipalities throughout Montana work with employees represented by unions. The heart of labor relations is collective bargaining. Early labor struggles centered on the right of workers to force employers to negotiate a collective agreement. Most labor agreements are negotiated uneventfully, with little public awareness, and at only a small cost to either party.
Collective bargaining basically consists of management and union representatives coming together to reach an agreement that will be acceptable to their constituents. The process can be smooth and uncomplicated if both parties are willing to negotiate cooperatively to reach an agreement. However, the process can also be complex and time consuming. The major issues surrounding collective bargaining include:
• Who will represent the workers?
• Which issues will be negotiated in the contract?
• What strategies will be used in bargaining?
• How will bargaining impasses be resolved?
• How will the contract be administered?
Mandatory items – Mandatory bargaining items include wages or salaries, hours of work, subcontracting, stock purchase plans, profit-sharing plans, pension and employee welfare plans, Christmas bonuses, workloads and production standards, and plant rules. Labor and management must bargain in good faith on these mandatory items, and they may bargain to an impasse without violating the unfair labor practice provisions. Unions may strike
to obtain mandatory items, and employers may refuse to sign a contract unless their version of these items is included in the contract. Voluntary items (also known as permissive) – Voluntary items are issues that may be discussed at the bargaining table but may not be bargained to an impasse. Employers cannot make voluntary items a condition for signing a labor contract, such as demanding that the union withdraw fines on members who crossed picket lines during a
strike. Unions may not strike over voluntary items. The Supreme Court has ruled that employers may legally demand that promotions, discipline, and production scheduling be matters of exclusive management control and not subject to arbitration. This decision appears to make these items voluntary. The labor agreement – A labor agreement can cover many issues or only a few. The wording of an agreement should be carefully considered so that misinterpretation leading to costly grievances may be avoided. Most labor agreements cover seven major bargaining issues: compensation and benefits, working conditions, job security,
discipline procedures and individual rights, union security, management prerogatives, and contract duration. Good faith bargaining – The conditions for good‐faith bargaining as defined by the courts and the National Labor Relations Board (NLRB) include the following:
1. Both parties must be willing to meet at reasonable times, in reasonable places, to discuss each party’s bargaining issues. A serious attempt must be made to adjust differences and to reach an acceptable common ground.
Montana Municipal Officials Handbook 84
2. A counterproposal must be offered when another party’s proposal is rejected. This must involve the “give and take” of an auction system.
3. A position on contract terms may not be constantly changed.
4. Evasive behavior during negotiations is not permitted.
5. There must be a willingness to incorporate oral agreements into a written contract
Collective bargaining basically consists of management and union representatives coming together to reach an agreement that will be acceptable to their constituents. The process can be smooth and uncomplicated if both parties are willing to negotiate cooperatively to reach an agreement. However, the process can also be complex and time consuming. The major issues surrounding collective bargaining include:
• Who will represent the workers?
• Which issues will be negotiated in the contract?
• What strategies will be used in bargaining?
• How will bargaining impasses be resolved?
• How will the contract be administered?
Mandatory items – Mandatory bargaining items include wages or salaries, hours of work, subcontracting, stock purchase plans, profit-sharing plans, pension and employee welfare plans, Christmas bonuses, workloads and production standards, and plant rules. Labor and management must bargain in good faith on these mandatory items, and they may bargain to an impasse without violating the unfair labor practice provisions. Unions may strike
to obtain mandatory items, and employers may refuse to sign a contract unless their version of these items is included in the contract. Voluntary items (also known as permissive) – Voluntary items are issues that may be discussed at the bargaining table but may not be bargained to an impasse. Employers cannot make voluntary items a condition for signing a labor contract, such as demanding that the union withdraw fines on members who crossed picket lines during a
strike. Unions may not strike over voluntary items. The Supreme Court has ruled that employers may legally demand that promotions, discipline, and production scheduling be matters of exclusive management control and not subject to arbitration. This decision appears to make these items voluntary. The labor agreement – A labor agreement can cover many issues or only a few. The wording of an agreement should be carefully considered so that misinterpretation leading to costly grievances may be avoided. Most labor agreements cover seven major bargaining issues: compensation and benefits, working conditions, job security,
discipline procedures and individual rights, union security, management prerogatives, and contract duration. Good faith bargaining – The conditions for good‐faith bargaining as defined by the courts and the National Labor Relations Board (NLRB) include the following:
1. Both parties must be willing to meet at reasonable times, in reasonable places, to discuss each party’s bargaining issues. A serious attempt must be made to adjust differences and to reach an acceptable common ground.
Montana Municipal Officials Handbook 84
2. A counterproposal must be offered when another party’s proposal is rejected. This must involve the “give and take” of an auction system.
3. A position on contract terms may not be constantly changed.
4. Evasive behavior during negotiations is not permitted.
5. There must be a willingness to incorporate oral agreements into a written contract