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Economics glossary · Work and what it pays

Collective bargaining

What collective bargaining means in economics, with an example and a question to test yourself.

Definition
Collective bargaining
Collective bargaining is the negotiation between a union and one or more firms over pay and conditions.
Not to be confused with: Trade union
A trade union is an organisation of workers that negotiates with employers over wages and working conditions.
Test yourself

What is the difference between collective bargaining and trade union?

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