As of 2014, three states expressly prohibit collective bargaining for all public sector employees. Federal law offers many federal employees the right to engage in collective bargaining over a limited set of issues, and state laws govern the right of state and local government employees to engage in collective bargaining. Public sector collective bargaining rights are established by a patchwork of laws.Some members of the private sector, including employees of very small businesses, agricultural workers, domestic workers, supervisors and independent contractors, do not have the right to engage in collective bargaining. Between the NLRA and RLA, approximately 85 percent of all private sector employees hold collective bargaining rights. The Railway Labor Act (RLA) provides railway and airline employees the right to form unions and engage in collective bargaining. The National Labor Relations Act (NLRA) grants most private sector employees the right to organize unions and collectively bargain. Despite the amount of bargaining that occurs every year, only 7.4 percent of private sector employees and 39.2 percent of public sector employees are covered by a contract. By one measure, more than 21,000 labor-management relationships engaged in collective bargaining during the 2014 fiscal year. In 2015 alone, an estimated five million men and women are engaged in the collective bargaining process. Employees and employers engage in collective bargaining to negotiate new contracts and renegotiate existing contracts that have expired.CBAs also usually contain a grievance procedure, which provides a process for resolving disputes between management and labor over interpretation of the contract and in the event of employee discipline or termination. While each agreement is unique to a given labor-management relationship, most CBAs include provisions that address compensation, scheduling, promotions, discipline and job standards. Because of its role in governing the actions of both management and labor, a CBA is often referred to as the “law” of the workplace. Collective bargaining results in a collective bargaining agreement (CBA), a legally binding agreement that lays out policies agreed to by management and labor.Collective bargaining is the formal process of negotiation between an employer and a group of employees-often with their union representative-that sets the terms and conditions of work.
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