What is a Bargaining Unit?

A bargaining unit is a group of employees that is represented by a union for collective bargaining purposes. Each bargaining unit has a bargaining unit agreement that specifies wages, hours and other employment conditions. A bargaining unit must be comprised of at least three employees, and a majority of the employees in the unit must be in favor of it. It is acceptable for a bargaining unit to comprise only a small proportion of the total number of employees in a business.

A larger bargaining unit provides employees with greater leverage against management, since it can threaten to strike en masse if certain benefits are not granted. However, the presence of more employees in the unit makes it more difficult to present a united front. The reverse issues arise with a smaller bargaining unit, which has less leverage, but has an easier time presenting a united front to management.