Which term refers to the system in which workers' unions bargain with management over terms of employment?

Study for the IB Business Management Higher Level (HL) Test. Prepare with flashcards, multiple-choice questions, and detailed explanations. Enhance your readiness for the exam!

Multiple Choice

Which term refers to the system in which workers' unions bargain with management over terms of employment?

Explanation:
Collective bargaining is the process by which workers, usually through a union, negotiate with management over terms of employment such as wages, hours, benefits, and working conditions. The result is typically a collective agreement that sets the terms for all workers in the bargaining unit, giving employees a formal voice and helping balance power in the workplace. The other terms don’t describe this system: conciliation is a dispute-resolution step often used during bargaining, not the overall process; democratic refers to governance by the people, not specifically to how workers negotiate with management; centralization describes where decision-making authority sits in an organization, not the method of negotiation between employees and management.

Collective bargaining is the process by which workers, usually through a union, negotiate with management over terms of employment such as wages, hours, benefits, and working conditions. The result is typically a collective agreement that sets the terms for all workers in the bargaining unit, giving employees a formal voice and helping balance power in the workplace. The other terms don’t describe this system: conciliation is a dispute-resolution step often used during bargaining, not the overall process; democratic refers to governance by the people, not specifically to how workers negotiate with management; centralization describes where decision-making authority sits in an organization, not the method of negotiation between employees and management.

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