Legal Definitions - area bargaining

Area bargaining refers to a specific type of negotiation process where a labor union discusses and reaches a collective agreement with multiple employers who operate within the same defined geographical region. Instead of negotiating with each company individually, the union bargains with a group of employers simultaneously to establish common terms and conditions of employment for their members across that area.

Here are some examples to illustrate this concept:

• Example 1: Construction Industry

  Imagine the Bricklayers and Allied Craftworkers Union Local 1 in a major metropolitan area. Instead of negotiating separate contracts with every single construction company that employs its members, the union might engage in area bargaining with the local chapter of the Associated General Contractors (AGC), which represents dozens of construction firms in that city. Through this process, they would establish a single, comprehensive collective-bargaining agreement covering wages, benefits, and working conditions for all union bricklayers employed by AGC member companies within that specific metropolitan region. This streamlines the negotiation process and ensures consistent standards across many employers.

• Example 2: Retail Grocery Sector

  Consider the United Food and Commercial Workers (UFCW) union in a large state like California. The union might conduct area bargaining with several major grocery store chains, such as Safeway, Kroger (which operates as Ralphs in California), and Albertsons, all of whom have numerous stores across Southern California. Rather than negotiating individual contracts for each chain, the UFCW would negotiate a master agreement that sets standard wages, health benefits, and retirement plans for thousands of unionized grocery employees working for any of these participating chains throughout the Southern California region. This ensures a level playing field for both workers and employers in that competitive market.

• Example 3: Hospitality and Tourism

  In a popular tourist destination like Las Vegas, the Culinary Workers Union Local 226, which represents hotel and casino employees, often engages in area bargaining. They might negotiate a single, overarching contract with a group of major resort operators and casino companies that own multiple properties on the Las Vegas Strip. This agreement would cover issues such as minimum wage rates, gratuity distribution, and scheduling rules for all unionized housekeepers, servers, and other staff working at the participating hotels and casinos within that specific tourist corridor. This approach helps maintain consistent labor standards across a significant portion of the local hospitality industry.