Define: Concession Bargaining

Concession Bargaining
Concession Bargaining
Quick Summary of Concession Bargaining

Concession bargaining involves workers sacrificing certain benefits they currently enjoy, such as higher wages or improved working conditions, in order to secure job stability. This ensures that they will not face layoffs. Concession bargaining is a form of collective bargaining, where workers and employers engage in negotiations regarding aspects such as compensation, working hours, and perks.

Full Definition Of Concession Bargaining

Concession bargaining involves negotiations between an employer and employees’ representatives, typically a union, in which employees agree to relinquish some previously gained benefits, such as higher wages, improved working conditions, or additional perks, in exchange for job security, such as protection against layoffs. This could include agreeing to a wage freeze or reduction in exchange for the employer’s commitment to not lay off any workers for a specific period. Another example is when employees agree to contribute more towards their health insurance to assist the company in saving money and avoiding layoffs. Concession bargaining is commonly utilised during challenging economic periods when companies are facing financial difficulties and need to reduce expenses. While it can be a tough decision for employees to make, as they are giving up hard-earned benefits, it can also help to preserve jobs and sustain the company’s operations.

Concession Bargaining FAQ'S

Concession bargaining refers to a negotiation process in which one party, typically the employer, seeks concessions or compromises from the other party, usually the employees or their representatives, in order to address financial or operational challenges.

Common concessions requested during concession bargaining may include wage freezes or reductions, reduced benefits, changes to work schedules, increased employee contributions to healthcare or retirement plans, or layoffs.

In most cases, employers are required to engage in good faith bargaining with the employees or their representatives before implementing any concessions. However, there may be exceptions depending on the specific labor laws and collective bargaining agreements in place.

If the parties cannot reach an agreement during concession bargaining, they may resort to alternative dispute resolution methods such as mediation or arbitration. In some cases, the employer may have the right to implement their proposed concessions if they have fulfilled their bargaining obligations.

Employees are generally protected by labor laws and collective bargaining agreements that require employers to negotiate in good faith and consider the interests of the employees. However, the specific protections may vary depending on the jurisdiction and the applicable labor laws.

Using concession bargaining as a strategy to break a union is generally considered an unfair labor practice. Employers are required to negotiate in good faith and cannot engage in tactics that undermine the employees’ right to organize and collectively bargain.

In most cases, employers cannot force employees to accept concessions. Concession bargaining typically involves a negotiation process where both parties must agree to the proposed concessions. However, there may be circumstances where an employer has the right to implement concessions if they have fulfilled their bargaining obligations.

Employees may choose to go on strike during concession bargaining if they believe that their rights are being violated or if they are dissatisfied with the proposed concessions. However, the legality and conditions for striking may vary depending on the jurisdiction and the applicable labor laws.

Retaliating against employees who refuse to accept concessions is generally considered an unfair labor practice. Employers are prohibited from taking adverse actions, such as termination or demotion, against employees for exercising their rights to engage in collective bargaining or refusing to accept concessions.

The duration of concession bargaining can vary widely depending on the complexity of the issues, the willingness of the parties to compromise, and the external factors influencing the negotiation process. It can range from a few weeks to several months or even longer in some cases.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 25th April 2024.

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