What Is a Collective Bargaining Agreement?
A collective bargaining agreement (CBA) is a written contract between an employer and a labor union. It outlines the terms and conditions of employment for union-represented employees. This document is the product of negotiation and is legally binding once both parties agree and sign.
Understanding CBAs helps you make informed decisions, maintain compliance, and avoid costly disputes.
What Does Collective Bargaining Agreement Mean?
A collective bargaining agreement sets the rules both the employer and employees must follow. These rules cover essential workplace terms, including pay, hours, benefits, and how to resolve disputes.
CBAs apply only to employees represented by a union. However, executives should understand their structure and impact, especially if managing a unionized workforce.
Key Features of a Collective Bargaining Agreement
1. Written and Legally Binding
A CBA is always in writing and enforceable in court. This structure provides clarity and accountability for both parties.
2. Negotiated Between Employer and Union
The employer and union representatives meet to negotiate the contract. This process is called collective bargaining. It continues until both sides reach an agreement or an impasse.
3. Covers Mandatory Subjects
CBAs must include:
- Wages: Base pay, raises, and bonuses
- Working Hours: Schedules, overtime, and shift rules
- Benefits: Health insurance, retirement plans, and paid leave
- Job Security: Layoffs, recalls, and termination processes
- Grievance Procedures: Steps for handling workplace disputes
4. May Include Permissive Subjects
Some topics are optional and negotiated at the employer’s discretion. These may include:
- Dress codes
- Use of company equipment
- Internal union matters
5. Prohibits Illegal Subjects
CBAs cannot include terms that break labor laws. Examples:
- Discrimination based on protected classes
- Requiring union-only hiring (closed shops)
Benefits of a Collective Bargaining Agreement
Understanding the benefits of a collective bargaining agreement helps executives see its role in workplace stability.
Provides Clear Expectations
A CBA reduces misunderstandings by setting fixed terms for employment. This helps executives manage teams effectively.
Promotes Fairness and Consistency
CBAs protect employees from arbitrary decisions. This promotes a stable environment and can reduce turnover.
Encourages Communication
The bargaining process opens channels for discussion between management and labor. This often leads to better working relationships.
Reduces Conflict
Dispute resolution procedures in the agreement help prevent lawsuits and public disputes. Grievance steps give both sides a path to resolution.
Enhances Compliance
Well-written CBAs align with employment laws. They reduce legal risks and show a commitment to fair practices.
What to Know About The Collective Bargaining Process
Bargaining in Good Faith
Both sides must participate honestly in negotiations. Employers must share key information, such as salary data or safety records, to help unions prepare their proposals.
Duration of a CBA
Most agreements last between one and three years. During that time, both parties must follow the terms. When the term ends, they renegotiate.
What Happens at Impasse
If talks stall, the employer may implement terms last offered, as long as the union was given a fair chance to respond. This is allowed under labor law, but only after reaching a true impasse.
Obligations During Expired Contracts
If a CBA expires before a new one is signed, most of its terms still apply. Exceptions include:
- No-strike or no-lockout provisions
- Management rights clauses
- Arbitration clauses
Executives must continue honoring wage and benefit terms while negotiating a new agreement.
How the Craighead Law Firm Can Help
The Craighead Law Firm helps employees understand and manage their legal responsibilities under collective bargaining agreements. With experience representing both employers and employees in civil litigation, Clayton Craighead brings a balanced approach to employment law.
Whether you’re entering negotiations or dealing with a dispute, we offer legal guidance that supports your business and protects your rights.
A collective bargaining agreement shapes key employment terms and impacts workplace dynamics. Executives should understand what a collective bargaining agreement means, how it works, and what benefits it brings. By taking a proactive and informed approach, you can reduce conflict, ensure compliance, and support productive relationships with union-represented teams.