The NLRA provides that a labor organization has the legal right to negotiate with an employer over all subjects that involve wages, hours, and other terms and conditions of employment. These are referred in the NLRA as mandatory subjects of bargaining. While wages and hours are fairly self-explanatory, “other terms and conditions of employment” is a broader category, which includes such matters as fringe benefits, holidays, vacations, sick leave, workplace safety, and employee discipline procedures, among other things.
Permissive subjects of bargaining are subjects about which a union and an employer may engage in collective bargaining but are not obligated to do so.
Example: Permissive subjects may include whether employees will be permitted to do work for charities while on company time, or if unions will be permitted to conduct general meetings with employees on company premises.
The NLRA also establishes subjects that are illegal for unions or employers to include in their bargaining demands: illegal subjects of bargaining. This category of subjects primarily includes efforts by a party to negotiate an agreement that contains provisions contrary to federal or state law.
Example: An employer could not legally demand that a union agree that workers covered by the Fair Labor Standards Act will be paid less than the minimum wage; and a union could not legally demand in most situations that an employer only hire as new employees persons who are already members of the union.