What are some steps that might be involved in the process used by unions and management to negotiate a contract?

Resource Library

By: National Education Association

Published: 06/2020 Last Updated: 06/2022

Collective bargaining is a process through which the union and employer exchange proposals, share ideas, mutually solve problems, and reach a written agreement.

Most times, bargaining occurs when an existing contract is going to expire. But sometimes, a local will be negotiating a first contract after organizing a new bargaining unit. Both sides form bargaining teams and gather information.

The resulting approved contract legally binds both parties. Each round of successor negotiations allows the parties to revisit existing agreements.

While there are many local variations, here is how the collective bargaining process commonly unfolds in public education.

NEA higher ed members make their voices heard together.

The union’s bargaining team is usually selected through a process outlined in the union’s constitution and by-laws, while the employer designates the management team.

Each team analyzes the current collective bargaining agreement to identify areas they want to improve.

Ideally the local will reach out to community partners, parents, and other stakeholders to seek input on issues for potential proposals.

Negotiations usually take several rounds of bargaining. The union and management sides express the rationale behind their proposals.

Some contract provisions remain predominantly the same from contract to contract while others, such as salary, are bargained with each contract. The parties may modify some sections, and either side may propose a new bargaining topic.

State law and court cases determine the mandatory, permissive, and prohibited subjects of bargaining.

When the union and employer teams reach a tentative contract agreement, they review the proposed contract with their respective constituency groups.

The union holds a ratification meeting where employees ask questions and offer opinions on the tentative contract agreement. Individuals are then asked to vote on the tentative agreement, usually by secret ballot. A majority of votes determines if the contract is ratified (accepted) or rejected.

The management team generally seeks approval from the school board or other governing body. If both sides ratify the tentative agreement, then the parties have a new (or successor) collective bargaining agreement. If the tentative contract agreement is rejected—by either party—the teams usually return to the bargaining table and continue to negotiate until they reach a new tentative agreement for a vote.

If the parties cannot reach an agreement, state law generally specifies how the dispute can be resolved.

Usually, the parties can use mediation, arbitration, and/or a strike or lockout to reach an agreement. Strikes (and lockouts) are infrequent in public education but are allowable in several states.

With the agreement of both parties, any section of a ratified contract can be revised during the term of the contract. In many districts, labor and management representatives meet regularly during the term of the contract to talk about and resolve issues of mutual concern, often through an established joint labor-management committee.

In addition, either at the bargaining table or during the life of a contract, the parties can bargain a memorandum of understanding (MOU) related to a specific issue. The benefit of an MOU is that it allows the parties to reach an agreement on a new or unforeseen issue that is important to both the union and the employer

The National Education Association (NEA), the nation's largest professional employee organization, is committed to advancing the cause of public education. NEA's 3 million members work at every level of education—from pre-school to university graduate programs. NEA has affiliate organizations in every state and in more than 14,000 communities across the United States.

One of the most important benefits of coming together with your colleagues to form a union is gaining the clarity and security of a union contract. Having one means knowing exactly what is expected of you at work, and what you can expect from your employer in return. A union contract is a written agreement between the employer and the employees that details the terms and benefits in a clear and legally-binding way (more on the value of contracts here).

This might not seem like a big deal at first, but consider the power of being able to propose policy changes or raise issues with a company as a whole instead of just taking them individually to a manager. You could have the best manager in the world, but it’s unlikely they have the power to change company-wide scheduling policies, or tackle vital benefits like health care. Drawing up a contract with your company as equal partners is an incredible opportunity to dramatically improve your day to day life at work—and at home.

But how does a contract get written to begin with? The negotiation process can look slightly different from company to company and industry to industry, but here’s what’s generally involved:

Contracts typically expire after 3-4 years (depending on what length of time you and the company agree on together), so many times negotiations begin when an old contract is getting ready to expire. Alternatively, you and your coworkers could have just organized your workplace and this could be your first time sitting down with the company. All of the employees covered under the same contract are called a “bargaining unit.”

Most discussions begin by starting with what you have now then building upon it, but you are only limited by what you and your coworkers can dream up together. Items up for discussion during negotiations are anything you want to address in your workplace, including, but not limited to:

Wages
Healthcare
Pensions and Retirement
Hours and Scheduling
Paid time off
Premium and holiday pay
Working conditions
Seniority and advancement

There are many ways to give input on what should be included in the new contract, including completing surveys, attending union meetings, texting or talking with union representatives, and emailing your local union office.

Two teams are established for the scheduled bargaining sessions, one representing the union members and the other representing the company. These negotiations can often take several rounds of meetings over the course of weeks or sometimes months. On the union side, we call the group representing the interests of all their co-workers at these meetings the “bargaining committee.”

Formal negotiations sessions begin and both the employer and the bargaining committee listen to each other’s ideas and priorities. The process always includes formal discussions with notes taken so there is a record of what was said in case there is a question or dispute later on.

During this time, both sides discuss and start to form the language of the contract. The union bargaining committee may request additional relevant information from the company to substantiate any of the employer’s claims, such as the impacts of various proposed changes on profitability. If common ground can’t be found, a neutral third-party mediator may be called in.

The bargaining unit holds a vote, either in person or via mail. You will always have a say on whether to accept the tentative agreement or not. A contract is not considered to be in effect until the membership has voted to ratify it. Meanwhile, the company’s representatives also take the agreement to their stakeholders for approval.

If the majority of your bargaining unit votes no and rejects the contract, the bargaining committee and the company will typically restart negotiations and continue trying to work out a solution that both sides can agree on.

If the majority of your bargaining unit votes yes to accept the contract, it goes into effect.

Have more questions about how negotiations work for your contract?