Collective bargaining is a type of negotiation used by employees to work with their employers. During a collective bargaining period, workers' representatives approach the employer and attempt to negotiate a contract which both sides can agree with. Typical issues covered in a labor contract are hours, wages, benefits, working conditions, and the rules of the workplace. Once both sides have reached a contract that they find agreeable, it is signed and kept in place for a set period of time, most commonly three years. The final contract is called a collective bargaining agreement, to reflect the fact that it is the result of a collective bargaining effort.

The roots of collective bargaining lie in the late nineteenth century, when workers began to agitate for more rights in their places of employment. Many skilled trades started using their skills as bargaining tools to force their employers to meet their workplace needs. Other workers relied on sheer numbers, creating general strikes to protest poor working conditions. Several labor pioneers started to establish a collective bargaining system so that labor negotiations could run more smoothly.

Typically, the employees are represented by a union. Collective bargaining actually begins with joining a union, agreeing to abide by the rules of the union, and electing union representatives. In general, experienced people from the union will assist the employees with putting together a draft of a contract, and will help them present their desires to the company. Numerous meetings between representatives of employer and employees will be held until the two can agree on a contract.

As the contract is being negotiated, general employees also have input on it, through their union officers. Thus, the agreement reflects the combined desires of all the employees, along with limitations that the employer wishes to see put in place. The result is a powerful document which usually reflects cooperative effort. In some cases, however, the union or the employer may resort to antagonistic tactics such as striking or creating a lockout, in order to push the agreement through.

For workers, collective bargaining is an excellent tool. Many workplaces benefit from unionization, which allows workers to speak together as a body to assert their rights. Employers also benefit from collective bargaining agreements, which set out clear expectations for both sides. The experience of collective bargaining can also be a learning experience for both sides of the discussion, as it encourages employers and employees alike to consider each other's positions.