What is a major outcome of collective bargaining?

A major outcome of collective bargaining is that it formulates the terms of employment contracts. Collective bargaining is a process where employers and unions negotiate the terms of employment on behalf of the employees. This can include wages, work hours, benefits, and other conditions of employment, resulting in a formal contract or agreement that outlines these terms.

This process empowers employees by providing them with a collective voice, allowing for a more balanced negotiation with employers. Notably, the terms negotiated through collective bargaining can lead to improved working conditions and fair compensation. The resultant contracts typically serve as a legal framework that governs the employer-employee relationship, ensuring that employees' rights and benefits are clearly defined.

The other options do not accurately reflect the core purpose and effect of collective bargaining: it is designed to improve employee conditions, not to reduce wages; it actually enhances, rather than eliminates, the need for employee representation; and it does not inherently lead to increased competition among workers but rather promotes cooperation and collective interests through the union's efforts.