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Bargaining councils are established through a formal process involving the recognition of trade unions and employer organizations within a specific industry or sector. These councils are typically formed when parties agree to negotiate terms and conditions of employment, often resulting in a collective agreement. The establishment process may vary by country, but it generally requires the registration of the council with relevant labor authorities and adherence to labor laws regulating collective bargaining. Once established, bargaining councils play a crucial role in mediating disputes and fostering dialogue between labor and management.

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