Legal Definitions - good-faith bargaining

Good-Faith Bargaining

Good-faith bargaining refers to the legal requirement in labor relations that an employer and the representative of its employees (typically a labor union) engage in genuine negotiations with a sincere intention to reach a collective bargaining agreement. This means both parties must approach discussions with an open mind, meet at reasonable times, exchange proposals, and make a serious effort to find common ground and compromise. It is not merely going through the motions; it requires a genuine desire to reach a mutually acceptable agreement. Failure to bargain in good faith is considered an unfair labor practice under labor law.

• Imagine a situation where a factory union is negotiating a new contract with management. The union proposes a 5% wage increase, citing rising living costs. Management initially offers a 2% increase, explaining the company's current financial challenges. In a process of good-faith bargaining, both sides would present supporting data, listen to each other's arguments, and be willing to modify their initial positions. The union might suggest a 4% increase with additional benefits, while management might counter with 3.5% and a commitment to a profit-sharing bonus. They would continue to discuss, exchange proposals, and explore compromises until they reach an agreement that both can accept, rather than one side simply refusing to budge from its initial stance.

• Consider a large hospital where the nurses' union is concerned about staffing levels and patient safety. The union requests a meeting with hospital administration to discuss increasing the number of nurses per shift. For good-faith bargaining to occur, the hospital administration must meet with the union representatives, genuinely listen to their concerns and proposed solutions, and present its own data regarding budget constraints or operational challenges. They would then work together to explore various options, such as adjusting shift schedules, hiring new staff, or implementing new technologies to support existing staff, all with the shared goal of finding a viable solution that addresses both patient care and the hospital's operational needs.