Ratification means to make something valid through official confirmation. It is a term used to describe the last stage of the collective bargaining process. Once both the parties have reached a tentative agreement regarding the issue at hand, all members of the bargaining unit have to place their votes which will then decide whether or not the agreement should be implemented.
The voting procedure takes place in the form of a secret ballot and the decision will be taken according to the majority (50% + 1, or more). Ratification from the employer’s side includes the votes of the governing body or the board of directors. If the majority is in support of the proposed agreement a memorandum of settlement is drawn.
This is an official document that dictates the terms of the agreement that has been voted for. The advantage of ratification is that the settlement is legally recognized and therefore neither party can do anything that does not comply with the stated terms.