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What is Parallel Bargaining? A Comprehensive Legal Overview
Definition & Meaning
Parallel bargaining, also known as pattern bargaining, refers to a negotiation strategy used by unions. In this approach, unions negotiate terms related to wages and benefits that align with agreements made by other companies within the same industry or region. The union typically starts negotiations with one company and, once an agreement is reached, uses that contract as a benchmark for negotiations with other companies. This strategy aims to establish a standard set of terms across the industry, ensuring that all workers receive similar benefits and protections.
Table of content
Legal Use & context
Parallel bargaining is commonly utilized in labor relations and collective bargaining contexts. It is particularly relevant in industries where multiple employers operate under similar conditions and compete for the same workforce. This method can involve various legal agreements, including collective bargaining agreements (CBAs), which outline the terms of employment. Users may find it beneficial to utilize legal templates from US Legal Forms to create or review these agreements, ensuring compliance with applicable labor laws.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A union representing workers in the automotive industry negotiates a new contract with a major manufacturer. After securing favorable terms, the union then approaches other manufacturers in the industry, presenting the new contract as the standard for negotiations.
Example 2: A hypothetical example might involve a union in the healthcare sector negotiating a contract with a hospital. Once an agreement is reached, the union uses this contract to negotiate with other hospitals in the region, aiming for similar wage increases and benefits.
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Strong labor protections; unions often use parallel bargaining in various sectors.
Texas
Right-to-work laws may limit the effectiveness of parallel bargaining.
New York
Robust union presence; parallel bargaining is common in public sectors.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Differences
Collective Bargaining
The process where unions negotiate with employers on behalf of workers.
Parallel bargaining is a specific strategy within collective bargaining.
Pattern Bargaining
Another term for parallel bargaining, emphasizing the establishment of a standard.
No significant difference; terms are often used interchangeably.
Common misunderstandings
What to do if this term applies to you
If you are involved in negotiations as part of a union or as an employer, consider the following steps:
Research existing agreements in your industry to understand potential benchmarks.
Consult with legal professionals or use resources like US Legal Forms for templates and guidance.
Be prepared for potential labor unrest if negotiations do not align with established patterns.
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