What Is Sectoral Bargaining?

David Madland and Malkie Wall explain the importance of sectoral bargaining.

Sectoral bargaining—also known as multiemployer, industrywide, or broad-based bargaining—is a form of collective bargaining that provides contract coverage and sets compensation floors for most workers in a particular occupation, industry, or region.

While broad-based bargaining can—and sometimes does—occur in the United States, current labor laws emphasize enterprise-based bargaining, in which unions negotiate with individual employers on behalf of a group of workers at a particular worksite. For example, a union might negotiate with a supermarket chain on behalf of workers at a particular store or with a building service company on behalf of janitors in a specific building. With sectoral bargaining, collectively bargained standards extend to every grocery store worker or janitor in the region.

The above excerpt was originally published in CAP Action. Click here to view the full article.

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David Madland

Senior Fellow; Senior Adviser, American Worker Project

Malkie Wall

Research Associate

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