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Collective AgreementThe union may negotiate a specific agreement with a single employer, or it may negotiate with a group of businesses to reach an industry-wide agreement. A collective agreement functions as a labor contract between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management) in respect to the terms and conditions of employment, such as wages, hours of work, working conditions, grievance procedures, and the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) oras a collective employment agreement (CEA).Legislation Regulating Collective BargainingIn the United States, the National Labor Relations Act of 1953 covers most collective agreements in the private sector. This act makes it illegal for employers to discriminate, spy on, harass, or terminate the employment of workers because of their union membership. It also makes it illegal for employers to retaliate against employees who engage in organizing campaigns or form company unions or to refuse to engage in collective bargaining with the union that represents their employees. It is also illegal to require any employee to join a union as a condition of employment. Unions are also exempt from antitrust law, in the hope that members may collectively fix a higher price for their labor.Employee Compensation and BenefitsCompensation and benefits is the subdiscipline of human resources that deals with employees’ remuneration.LEARNING OBJECTIVES
Outline the strategies employed by human resources to compensate employees with pay and benefitsKEY TAKEAWAYSKey PointsCompensation and benefits (C&B) encompass the rewards an organization givesto employees in exchange for the work they do.There are four types of C&B: guaranteed pay, variable pay, benefits, and equity-based compensation.Many factors external to the organization affect employees’ remuneration. These include union influence, the state of the economy, and business competition.Key Termsremuneration: Something given in exchange for goods or services rendered.Compensation and benefits (C&B) is a subdiscipline of human resources that is focusedon policy making for employee compensation and benefits. As part of any employment agreement, employees are compensated for services rendered in a predetermined and equitable fashion.Compensation and Benefit TypesEmployee compensation and benefits can be divided into four general categories:
Cash reward: The ability to reward employees with cash and other incentives is a source of organizationalpower.1.Guaranteed pay—Monetary compensation paid by an employer to an employee based on employee/employer agreements. The most common form of guaranteedpay is the basic salary.