Bargaining Unit - Meaning & Definition

Published by MBA Skool Team, Last Updated: November 29, 2015

What is Bargaining Unit?

A group of employees that represent any union or an association in order to bargain collectively or to dealing with the management regarding any other issue. There can be various reasons for such kind of representation by the employees.

Here the size of the bargaining unit does not depend on the size of the organization but it must contain at least three employees. It is necessary for the bargaining unit to have a majority support of the union. The bargaining unit operates for the common needs of the union. The bargaining unit can also a small portion of a large organization where there are not many employees that are a part of a union.

Following are the examples of the bargaining unit:-

1. Clerical Employees

2. Blue-collar worker

3. Administrative employees

4. Ex-servicemen of Defence

5. Docters

6. Lawyers

7. Public servants

The management must know all the bargaining units around in order to close big deals strategically. The bargaining units put forward the common agenda of the union towards the management of their organization. Bargaining units must show unity infront of the management side however, they might disagree on certain points internally. The bargaining units negotiate over issues such as wages, working hours, promotions, bonus, benefits, working conditions and any other dispute that might occur. Anyone who is a part of bargaining unit must read the collective bargaining agreement thoroughly. It is very important to have a very efficient bargaining unit as the result of poor bargaining power results in some really brutal incidents such as labor unrest in the Yanam plant of Regency Ceramics, which is the biggest ceramics plant in south India. The bargaining units of the union failed to come to an agreement with the management of Regency Ceramics. The workers attacked the President (Operations) of the company Mr. K. C. Chandrasekhar at his residence and later died in the hospital.


Hence, this concludes the definition of Bargaining Unit along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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