Pattern bargaining
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Pattern bargaining is a process in labour relations, where a trade union gains a new and superior entitlement from one employer and then uses that agreement as a precedent to demand the same entitlement or a superior one from other employers.
In the United States, pattern bargaining was pioneered by unions such as the United Auto Workers and the Teamsters . The first step of the bargaining process is the identification of a target employer that is most likely to agree to a favourable employment contract. For the selected company, this provides an opportunity to influence the contract for the industry, while the downside is the risk of a labour disruption if negotiations stall or fail. Once this contract has been successfully negotiated and ratified by the unionized workers, the union declares it a "pattern agreement" and presents it to the other employers as a take-it-or-leave-it offer.
In Australia , pattern bargaining was specifically outlawed under the now-repealed WorkChoices legislation. The law was repealed by the Labor Party after their victory in the 2007 election , but Labor's Fair Work Act, which came into force on 1 July 2010, still outlaws pattern bargaining.
References
- Marshall, Robert, and Antonio Merlo. 1996. Pattern bargaining. Federal Reserve Bank of Minneapolis Research Department Staff Report 220 .
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