Overtime in the context of "Collective bargaining"

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⭐ Core Definition: Overtime

Overtime is the amount of time someone works beyond normal working hours. The term is also used for the pay received for this time. Normal hours may be determined in several ways:

  • by custom (what is considered healthy or reasonable by society),
  • by practices of a given trade or profession,
  • by legislation,
  • by agreement between employers and workers or their representatives.

Most national countries have overtime labour laws designed to dissuade or prevent employers from forcing their employees to work excessively long hours (such as the situation in the textile mills in the 1920s). These laws may take into account other considerations than humanitarian concerns, such as preserving the health of workers so that they may continue to be productive, or increasing the overall level of employment in the economy. One common approach to regulating overtime is to require employers to pay workers at a higher hourly rate for overtime work. Companies may choose to pay workers higher overtime pay even if not obliged to do so by law, particularly if they believe that they face a backward bending supply curve of labour.

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👉 Overtime in the context of Collective bargaining

Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.

The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a group of businesses, depending on the country, to reach an industry-wide agreement. Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management, or, in some countries such as Austria, Sweden, Belgium, and the Netherlands, by an employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions, grievance procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA).

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Overtime in the context of Semi-variable cost

In business and accounting, a semi-variable cost (also referred to as a mixed or semi-fixed cost) is an expense which contains both a fixed cost component and a variable cost component. It is often used to project financial performance at different scales of production. It is related to the scale of production within a business where there is a fixed cost which remains constant across all scales of production while the variable cost increases proportionally to production levels.

Using a factory as an example, fixed costs can include the leasing of the factory building and insurance, while the variable costs include overtime pay and the purchase price of the raw materials.

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LINKED FROM (PARENTS)
← Collective bargaining ← Semi-variable cost
LINKS TO (CHILDREN)
Working hours → Labour law → Backward bending supply curve of labour →