Collective Bargaining & Contract Negotiations

Collective bargaining is how workers, through a union, negotiate with an employer over pay, benefits, hours and working conditions, and put the agreement in a written contract. For many workers, including most union tradespeople, the contract sets what they’re paid and what safety protections they have. Understanding the process shows what is possible and what the law requires of each side.

• Union Members
• Stewards
• Employers

The legal basis

• The National Labor Relations Act (NLRA) protects the right of most private-sector workers to organize and bargain collectively through representatives they choose. See Right to Organize and Union Elections.
• Once a union is certified or recognized, the employer and the union both have a legal duty to bargain in good faith about wages, hours and other terms and conditions of employment (Section 8(d)). That means meeting at reasonable times, taking proposals seriously and trying to reach an agreement, though neither side must agree to a particular proposal or make a concession.
• Public employees have bargaining rights under state or federal laws that differ widely. Railway and airline workers are covered by the Railway Labor Act.
• The National Labor Relations Board (NLRB) enforces the NLRA and handles unfair labor practice charges.

What can be bargained

Safety and health are mandatory subjects of bargaining, so unions can negotiate terms that go beyond OSHA rules. See Union Safety Representatives.

How negotiations usually go

1. Preparation: the union surveys members, forms a bargaining committee, researches the employer’s finances and wages elsewhere, and sets priorities. The employer prepares its own goals.
2. Notice: when there is an existing contract, a party that wants to change or end it must give written notice 60 days before the contract expires, and notify the Federal Mediation and Conciliation Service (FMCS) and the state agency 30 days after, if no agreement has been reached (Section 8(d)).
3. Exchange of proposals: each side presents its demands and offers, usually in writing, and explains them. Each side may request information, such as data needed to bargain, and the other side must provide relevant information.
4. Bargaining sessions: the parties meet, trade proposals, narrow the issues and hold “sidebars” to explore compromises. Talks can take weeks or months, and sometimes years for a first contract.
5. Tentative agreement: when the negotiators agree, they sign a tentative agreement, which is not final.
6. Ratification: union members vote to accept or reject the deal. The employer also approves. Most unions require a majority vote of those voting.
7. Signing and implementation: the contract takes effect, with a set term, often three years in many industries.

Mediation, impasse and pressure

• Mediation: if talks stall, the FMCS can send a mediator, a neutral who helps the parties find agreement but can’t force it. Mediation is free and common.
• Impasse: when good-faith bargaining has gone as far as it can without agreement, the parties are at impasse. An employer may then, in some cases, implement its last offer. Disputes over whether there was a true impasse go to the NLRB.
• Economic pressure: unions may use strikes, picketing and other actions; employers may use lockouts or replacement workers. See Strikes, Picketing & Lockouts.
• Interest arbitration: in some sectors, such as some public safety workers, an arbitrator decides unresolved terms.
• Unfair labor practices: refusing to meet, bargaining in bad faith, making changes without bargaining or refusing to provide information are violations. File a charge with the NLRB within six months.

What a contract usually contains

• Recognition and scope: who is covered and what work is covered.
• Wages and benefits: pay scales by classification, overtime, shift differentials, per diem, and pension and health fund contributions. See Overtime and Show-Up Pay.
• Hours and scheduling, call-in and holiday rules.
• Seniority, hiring halls and referral procedures, layoffs and recall.
• Discipline and discharge: “just cause” standards and the right to representation.
• Grievance and arbitration procedure: how disputes under the contract are resolved. See How Unions Work.
• Safety and health provisions: safety committees, protective equipment, the right to refuse unsafe work, training and the role of safety representatives.
• Union security and dues checkoff: to the extent allowed by state law. See Union Dues, Initiation Fees & Assessments.
• Management rights and no-strike clauses: what the employer decides on its own and promises not to strike or lock out during the contract.
• Term and renewal, and the procedure to reopen or end the contract.

Construction industry agreements

• Construction is special under the NLRA. Section 8(f) lets employers and unions make pre-hire agreements before workers are hired, because construction jobs are short-term and workers move between employers. See Construction Trade Unions.
• Many agreements are area-wide or master agreements between a union local (or council) and a group of contractors, covering many jobs. Contractors may sign project labor agreements (PLAs) for single large projects.
• Contracts commonly cover journeyworker and apprentice wages, benefit fund contributions, hiring hall referral, work jurisdiction between trades, and safety and training requirements. See Apprenticeships and Prevailing Wage.
• Non-union contractors set terms without bargaining but must still follow wage, hour and safety laws.

Your role as a member

• Take part: attend meetings, answer surveys and tell your steward what matters to you.
• Read the contract. Know your wage rates, rules on discipline, grievance steps and safety terms. Ask for a copy.
• Vote on ratification after reading the proposed deal and asking questions.
• Use the grievance process when the contract is violated, and keep records.
• Know that you can’t be retaliated against for union activity. See Wrongful Termination and Where to Get Help.

For workers without a union

Workers can still act together on working conditions, which is protected by the NLRA as concerted activity, and can start an organizing effort. See Right to Organize and Social Media & Your Job.

Bargaining checklist

• I know the employer and union must bargain in good faith over wages, hours and conditions
• I know safety and health are mandatory subjects
• I know the 60-day and 30-day notice steps for ending or changing a contract
• I know mediation, impasse and the unfair labor practice process
• I have read my contract and know where to find the grievance and safety terms
• I know how to vote on ratification and who to ask questions

Last updated: October 4, 2026