Final answer:
The process of negotiating, administering, and interpreting a labor contract is called collective bargaining, a fundamental component of union activities aimed at balancing employer-employee relations.
Step-by-step explanation:
The process of negotiating, administering, and interpreting a labor contract is called collective bargaining. This is the method by which a labor union, which is an organization of workers, negotiates with employers over wages, working conditions, and other employment terms.
Through collective bargaining, unions aim to balance the power between employers and their employees, requiring employers to deal with their workforce as a unified group. This process is crucial in securing mutually agreeable terms for the workforce and ensuring fair treatment for union members.