• Employers and union representatives cannot refuse to bargain collective with each other.

Collective bargaining is the method whereby unions and employers determine the conditions of employment through direct negotiation. This process normally results in a collective bargaining agreement for a stipulated period (e.g., three years) that sets forth:

• Wages
• Hours
• Other conditions of employment

These obligations are imposed equally on the employer and the representative of its employees. It is an unfair labor practice for either party to refuse to bargain collectively with the other. The obligation does not, however:

• Compel either party to agree to a proposal by the other, or
• Require either party to make a concession to the other.

The National Labor Relations Act (NLRA) provides further that upon the expiration of a collective-bargaining agreement, no party to the contract can end or change the contract unless the party wishing to end or change it takes specific steps outlined in the NLRA.

Required subjects of collective bargaining

The duty to bargain covers all matters concerning mandatory subjects of bargaining, about which the employer, as well as the employees’ representative, must bargain in good faith. The law does not, however, require either party to agree to a proposal or require the making of a concession.

The mandatory subjects of bargaining include, but are not limited to:

• Pay;
• Wage;
• Hours of work;
• Certain conditions of employment;
• Pensions for present employees;
• Bonuses;
• Group insurance;
• Grievance procedures;
• Safety practices;
• Seniority;
• Procedures for discharge, layoff, recall, or discipline; and
• Union security.

Certain managerial decisions, such as subcontracting, relocation, and other operational changes not covered by an existing contract, may not need to be bargained, even though they affect employees’ job security and working conditions. The issue of whether these decisions require bargaining depends on the employer’s reasons for taking action.

Even if employers are not required to bargain about the decision itself, they must normally bargain about the decision’s effects on employees. On nonmandatory subjects, matters that are lawful but unrelated to wages, hours, and other conditions of employment, the parties are free to bargain and agree, but neither may insist on bargaining on such subjects over the objection of the other.