Good faith bargaining

From CEOpedia | Management online

Good faith bargaining is a term related to a law labour. It is a type o negotiation, in which a duty of parties is to bargain in a "good faith". These collective negotiations are between employer and union or representative of the employees. General meaning is to respect other party, to meet and negotiate at reasonable times. It is important to show consideration to "wages, hours, and terms, and conditions of employment, of the negotiation of an agreement, or any question arising thereunder, and the execution of the written contract incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree a proposal or require the making of a concession"[1]. To make good arrangement each parties must declare honesty and integrity and be wise with their operations, tactics and attitude[2].

Violations of the good faith bargaining

Violations for the good faith bargaining may stem from four sources[3]:

  • form of a negotiation subject
  • particular bargaining activities
  • entire proccedings of the parties
  • duty of negotiations with seccessor employer

Type of bargaining subject

Illegal bargaining subjects include violation of law, there is no legal obligation to negotiate over this kind of case. Portion of a parties contract with illegal claims cannot be enforced in a court. These are examples of illegal terms that should not be in a contract[4]:

  • closed-shop union security clause
  • a "whites only" employment clause
  • mandatory retirement
  • permitting management to pay less than the federal minimum wage for covered employees

Mandatory bargaining subjects are subjects with straight impact on units members salary, hours and different terms of employment. Inclusive of it readiness to meet at reasonable times to negotiate or prepardness to limit oral contracts to writing[5]. Voluntary bargaining subjects also known as non-mandatory or permissive. Subjects have no direct influence on unit members condition of employment and are legal. For instance a common funded industry marketing promotion plan, strike insurance, an interest arbitration clause or greater pension benefits for retired bargaining unit members[6].

Footnotes

  1. Yates M. (1994)p.117
  2. Holley W., Jennings K., Wolters R. (2008), p.268
  3. Holley W., Jennings K., Wolters R. (2008), p.268
  4. Holley W., Jennings K., Wolters R. (2008), p.268
  5. Holley W., Jennings K., Wolters R. (2008), p.268
  6. Holley W., Jennings K., Wolters R. (2008), p.270


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References

Author: Weronika Lisik