What is Concession Bargaining? A Comprehensive Legal Overview

Definition & Meaning

Concession bargaining refers to a type of collective bargaining in labor law where trade unions agree to give back previously secured benefits, such as wages or improved working conditions. In return, they seek job security, often in the form of protection against layoffs. This practice typically arises during economic downturns or when companies face increased competitive pressure. It is also known as union givebacks or employee givebacks.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A manufacturing company facing financial difficulties may negotiate with its union to reduce wages temporarily in exchange for a commitment not to lay off workers.

Example 2: A public sector union might agree to cut back on health benefits to ensure that all employees retain their jobs during a budget crisis. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Concession Bargaining Regulations
California Strong protections for union negotiations; concessions often require member approval.
Texas Right-to-work state; concessions may be less common due to weaker union presence.
New York Robust labor laws support collective bargaining, including concessions.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Collective Bargaining The process of negotiation between employers and a group of employees. Concession bargaining specifically involves giving back benefits.
Union Givebacks Another term for concession bargaining. Same concept, but may imply a more negative connotation.

What to do if this term applies to you

If you are involved in concession bargaining, consider the following steps:

  • Review the current labor agreement and understand your rights.
  • Consult with union representatives to discuss potential concessions.
  • Explore US Legal Forms for templates that can help you draft or review agreements.
  • If the situation is complex, consider seeking professional legal advice.

Quick facts

  • Common in industries facing economic challenges.
  • Focuses on job security in exchange for concessions.
  • Can involve reductions in wages, benefits, or working conditions.

Key takeaways

Frequently asked questions

It is a type of negotiation where unions agree to give back benefits in exchange for job security.