Final answer:
The process where union and company representatives negotiate a new labor contract is called collective bargaining, which involves discussion on wages and work conditions by a labor union on behalf of its members.
Step-by-step explanation:
The process in which union and company representatives meet to negotiate a new labor contract is called collective bargaining. This is a crucial aspect of labor relations, where a labor union operates like a monopoly in the labor market to negotiate wages and working conditions on behalf of its members. Over time, due to various factors like globalization, shifts in industry, and legal challenges, there has been a noticeable decline in American union membership.
The presence of a union changes the dynamics of negotiations, as employers must negotiate with a collective group rather than individual employees. Collective bargaining is the process in which union and company representatives meet to negotiate a new labor contract.