The Law Says ‘Wages, Hours, and Working Conditions.’ Only Two Are Self-Explanatory.
Wages, hours, and what?
When it comes to the mandatory bargaining topics, wages and hours are easy. It's the third, working conditions, that seems to trip everyone up.
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| A confused group of workers grapples with the meaning of 'working conditions' in collective bargaining. |
When the law says that unions can bargain over “wages, hours, and working conditions,” it’s referring to the mandatory subjects of collective bargaining: the things employers are legally required to negotiate in good faith with a union. The phrase is a cornerstone of labor law.
The first two are straightforward. The topic of wages covers anything to do with compensation. Hours includes any issues related to work schedules.
It's the third one, working conditions, that people find the most ambiguous by far.
Let's shed some light on what exactly the phrase means, in real time, at the bargaining table.
LITERAL MEANING AND PRACTICAL APPLICATION
Literally, tacking 'working conditions' onto the phrase, 'wages, hours...' means 'everything else.'
It's a broad and flexible category that covers almost every other aspect of employees’ on-the-job experience; anything that affects how, where, or under what circumstances employees perform their work.
I can picture a lot of people shaking their head at this point. And if you're one of them, you wouldn't be wrong. In practice, there are a number of topics that are considered “management prerogatives” or permissive subjects. Unions can raise them, but employers aren’t legally required to bargain over them.
To blur the lines even further, a management rights clause is the section of a union contract that spells out what management keeps control over, like hiring, assigning work, setting schedules, who the managers and supervisors are, or choosing equipment. It’s said that most collective bargaining agreements (CBAs) include a management rights clause. In reality, it’s much harder to find one that doesn’t.
Another question that comes up frequently is this: doesn't OSHA determine standards for a lot of working conditions?
The answer, of course is, yes they do.
And there you have it, the precise point where confusion arises.
What’s considered the company’s domain and what falls under working conditions?
Let's unpack this. We can start with what is typically included in a management rights clause:
| Category | Typical Rights or Language |
|---|---|
| Direction of the Workforce | Hire, promote, transfer, assign, and lay off employees; suspend, discipline, or discharge for just cause; determine job qualifications and assignments. |
| Operational Control | Decide methods, processes, and means of production or service; select tools, equipment, materials, and technology; set production standards and work rules; introduce new machinery or systems. |
| Organizational Decisions | Determine the size and composition of the workforce; create or eliminate departments or classifications; subcontract or transfer work. |
| Scheduling and Workload | Set work schedules, shifts, and hours of operation; assign overtime; determine staffing levels. |
| Business Direction | Decide the company’s products, services, and overall strategy; open, close, or relocate operations. |
As you can see, a lot of these items relate to working conditions.
You might be asking yourself how both things can be true.
If so, you're definitely not alone. This baffles a lot of people, even legal experts. It seems contradictory, until you break it down. I created the graphic below to clarify. It represents contract negotiations about working conditions.
WORKING CONDITIONS AND REGULATIONS
While it's true that safety rules can't be negotiated away, agencies like OSHA are a floor, not a ceiling. They set minimum standards, but collective bargaining can go beyond them.
For example, OSHA might allow 90 dB noise for 8 hours, but a union could bargain for lower noise exposure limits or mandatory hearing protection.
WORKING CONDITIONS AND MANAGEMENT RIGHTS
The management rights clause means that the company reserves the right to make certain decisions. But, how those decisions are implemented (training, safety, timing, pay impact, etc.) can still be subject to bargaining.
For example: Suppose an employer decides to replace old machinery with new models. The decision itself is non-negotiable, but the effects (training, safety procedures, workload, job classifications, pay changes, etc.) are most likely mandatory subjects.
Or, the company changes the type of chemicals it uses for sterilizing. The union may be able to negotiate over protective gear, ventilation, hazard pay, or training, but not over which chemical the company buys.
Working Conditions Made Simple
The conditions under which a unionized employee works are mandatory bargaining topics.
When management makes organizational decisions that aren’t mandatory subjects of bargaining, that’s allowed.
However, wherever those decisions affect the employees in the bargaining unit, the impact of those decisions usually is a mandatory topic.
In short: it's never the 'what' but always the 'how.'
What: Any decision included in the management rights clause.
How: What about the unionized employees job will change as a result of management's decision, and how will that be addressed?
What happens next?
Collective bargaining: Ideally, both parties come to the table with the intent to bargain in good faith, and try their best to come to an agreement.
Hopefully that clears it up!
As always, if you have questions about any of this, it's better to seek qualified counsel than to try to decipher it on your own.
