What does the term 'collective bargaining' involve?

The term 'collective bargaining' specifically refers to the formal process where representatives of workers, usually from labor unions, negotiate with employers on behalf of employees. This dialogue focuses on establishing various aspects of employment, including wages, working conditions, benefits, and other terms of employment. Collective bargaining aims to reach an agreement that enhances the welfare of the workforce while balancing the interests of the employers.

This process is grounded in the principle of workers coming together to negotiate as a group, which often results in stronger bargaining power compared to individual negotiations. Through collective bargaining, employees collectively express their demands, which can lead to more favorable conditions than might be achieved through individual employment contracts. Thus, the essence of collective bargaining lies in the collaborative dialogue and negotiation between unions and employers concerning key employment terms.