8.3 Collective Bargaining Process and Good-Faith Conduct

Key Takeaways

  • Collective bargaining is the process for negotiating wages, hours, and other terms and conditions of employment with the employees' representative.
  • Good-faith bargaining requires serious participation in the process, not automatic agreement to every proposal.
  • HR supports bargaining through data, costing, policy analysis, manager alignment, accurate notes, and implementation planning.
  • Unilateral changes to mandatory employment terms can create risk when a bargaining obligation exists.
Last updated: May 2026

Collective Bargaining Basics

Collective bargaining is the structured negotiation between an employer and the representative of a group of employees. Bargaining commonly addresses wages, hours, benefits, scheduling, overtime, seniority, discipline, grievance procedures, safety, layoffs, and other working conditions. The resulting collective bargaining agreement, often called a CBA, becomes a key source of workplace rules for covered employees.

PHR candidates should understand good-faith bargaining at an operational level. Good faith means the parties participate seriously in the process, meet as required, consider proposals, provide relevant information when required, and avoid conduct that undermines the representative relationship. It does not mean either side must agree to a proposal or make a concession on every topic.

HR Support in Bargaining

HR support areaExamples
Data preparationHeadcount, pay rates, overtime, benefits utilization, turnover, schedules, job classifications.
CostingWage proposals, shift premiums, benefit changes, paid time off, staffing rules, training time.
Policy analysisConflicts between proposed language, handbook rules, attendance systems, and discipline procedures.
Manager alignmentOperational feasibility, supervisory training needs, and implementation impacts.
RecordsBargaining notes, proposal versions, tentative agreements, and final contract language.
ImplementationPayroll updates, HRIS changes, supervisor guides, employee communications, and grievance tracking.

Mandatory subjects are the core topics that generally require bargaining because they involve wages, hours, and terms and conditions of employment. Permissive subjects may be discussed but are not treated the same way. The exam is unlikely to require a legal classification for every topic, but it may ask whether HR should bargain before changing a shift schedule, attendance rule, wage rate, or benefit that affects represented employees.

Unilateral changes can create risk when an employer changes a mandatory subject without satisfying a bargaining obligation. HR should not assume that a handbook policy can override a labor contract or bargaining duty. If a manager wants to change start times for represented employees, HR should check the CBA, past practice, management rights language, and bargaining obligations before approving the change.

Information requests require discipline. A union may request information relevant to bargaining or contract administration. HR should preserve the request, identify responsive records, protect confidential information appropriately, and escalate where needed. Ignoring the request or refusing reflexively can create risk. Sharing private information without review can also create risk.

The bargaining team should keep careful notes. Notes should identify proposal dates, counterproposals, tentative agreements, open issues, costing assumptions, and implementation questions. HR may also help prepare leader briefings so operations understands what can and cannot change during bargaining.

Use this bargaining process map:

  1. Identify represented employees and applicable contract or bargaining status.
  2. Gather accurate workforce, payroll, benefit, and operational data.
  3. Review proposals for cost, feasibility, consistency, and compliance issues.
  4. Support good-faith meetings, records, and information responses.
  5. Implement final agreement terms through HRIS, payroll, manager training, and employee communication.

For PHR answer choices, avoid extremes. Good faith bargaining is not surrender, and management rights are not unlimited. HR's role is to keep the process accurate, lawful, documented, and operationally executable.

Test Your Knowledge

What does good-faith bargaining require?

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Test Your Knowledge

A manager wants to change start times for represented employees next week. What should HR do first?

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Test Your Knowledge

Which HR activity best supports bargaining implementation?

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