What is a Collectively Bargained Plan? (with pictures)

Malcolm Tatum
Malcolm Tatum
Colllective bargaining is sometimes used by workers and employers to reach agreement on matters including retirement plans.
Colllective bargaining is sometimes used by workers and employers to reach agreement on matters including retirement plans.

Collectively bargained plans are agreements that are reached between employees and a group of employers. Typically, the process of collective bargaining is conducted through authorized representatives of the employees who interact with representatives of the employers. The collectively bargained plan often will relate to matters that are of common concern to both employees and employers, such as retirement plans, safety conditions and other benefits that are provided for the employee force.

Employees may benefit from discussing retirement with a professional.
Employees may benefit from discussing retirement with a professional.

Unions are often the mechanism that allows for the creation of a collectively bargained plan. A union will represent the interests of the member employees, and will engage the employers to establish what is considered an equitable package of benefits in exchange for labor services of the employees. The union will engage in negotiations with the employers to come to terms on the specifics of the plan. From time to time, the particulars of an existing collectively bargained plan will be reviewed and amended to allow for changes in the economy and other factors.

A collectively bargained plan usually addresses employee vacation days.
A collectively bargained plan usually addresses employee vacation days.

In many instances, it is possible for employees and employers to arrive at a collectively bargained plan without any interruption in the labor provided by the employee force. From time to time, negotiations for amendments or enhancements to an existing plan become difficult. When this takes place, the union may choose to call for a strike. Essentially, a strike means that the employees do not report to work until the union informs members that a new collectively bargained plan has been agreed upon with employers. During the strike, the union may supply the employees with limited benefits, depending on the structure of the union.

Members of labor unions engage in collective bargaining with their employees so that they may receive acceptable wages.
Members of labor unions engage in collective bargaining with their employees so that they may receive acceptable wages.

In the best of circumstances, a collectively bargained plan will create a balance between the desires of the employees and the ability and willingness of the employers to address those desires. A typical plan will usually address such factors as salary and wages associated with specific jobs and positions, the process for accruing vacation and sick days, retirement plan options, healthcare options, and other benefits that may be relevant to the industry involved.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including , and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including , and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

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Discussion Comments

anon29378

While a bargaining period has been lodged and accepted, can the employer force a roster change if its one of your claims on the log?

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    • Colllective bargaining is sometimes used by workers and employers to reach agreement on matters including retirement plans.
      Colllective bargaining is sometimes used by workers and employers to reach agreement on matters including retirement plans.
    • Employees may benefit from discussing retirement with a professional.
      Employees may benefit from discussing retirement with a professional.
    • A collectively bargained plan usually addresses employee vacation days.
      A collectively bargained plan usually addresses employee vacation days.
    • Members of labor unions engage in collective bargaining with their employees so that they may receive acceptable wages.
      Members of labor unions engage in collective bargaining with their employees so that they may receive acceptable wages.