It is important to note that after the conclusion of a KBA, both the employer and the union are required to respect this agreement. Therefore, an employer should retain the assistance of a lawyer before participating in collective bargaining. Collective bargaining allows workers and employers to voluntarily agree on a wide range of issues. Nevertheless, it is limited to some extent by federal and regional laws. A collective agreement cannot be entered into by contract, which is prohibited by law. For example, a union and an employer may use unconventional negotiations to deprive workers of the rights they would otherwise enjoy under laws such as civil rights laws (Alexander v. Gardner-Denver Co., 415 U.S. 36, 94 P. Ct. 1011, 39 L Ed.
2d 147 ). Nor can collective bargaining be used to waive the rights or obligations that the laws impose on each party. For example, an employer cannot negotiate with collective agreements to lower safety standards that it must meet under the Occupational Safety and Health Act (29 U.S.C.A. Moreover, the collective agreement is not purely voluntary. The inability of one party to reach an agreement allows the other party to resort to certain legal tactics, such as strikes and lockouts, to exert economic pressure and to reach an agreement. Moreover, unlike trade agreements governed by national law, the collective agreement is almost exclusively governed by federal labour law, which determines issues that require collective bargaining, the date and nature of negotiations, and the consequences of non-negotiation or compliance with a collective agreement. In Fibreboard, the Supreme Court held that an employer`s decision to allocate part of its activities, after its three-part analysis, was a mandatory bargaining topic. First, subcontracting is in the literal sense of the NLRA`s term “conditions of employment.” Second, the fact that subcontracting is a subject of compulsory bargaining has an impact on the objectives of the NRL, putting “a crucial problem for work and management in the framework most conducive to industrial peace by Congress” – collective bargaining. Third, other employers in the same sector have looked at contract awarding in negotiations, rather than leaving it to the discretion of management. In his agreement, Justice Potter Stewart added that issues “at the heart of corporate control,” such as decisions on “investment capital commitment and the fundamental volume of the business,” are not mandatory bargaining topics.
Collective bargaining is a process of bargaining between employers and a group of workers who aim to regulate wages, working conditions, benefits and other aspects of workers` compensation and workers` rights. The interests of workers are generally represented by representatives of a union to which the workers belong. Collective agreements concluded in these negotiations generally define the size of wages, working time, training, health and safety, overtime, claim mechanisms and rights to participate in professional or professional affairs.  Nevertheless, a party`s insistence on a given contract term is not necessarily an unfair labour practice.