Legal Definitions - collective-bargaining agreement

A collective-bargaining agreement is a contract between an employer and a labor union that outlines the terms and conditions of employment, including wages, benefits, and procedures for resolving disputes. It is also known as a labor agreement, labor contract, union contract, collective-labor agreement, or trade agreement.

• A union representing factory workers negotiates a collective-bargaining agreement with the factory owner that includes a 5% wage increase and improved safety measures.
• A school district and its teachers' union reach a collective-bargaining agreement that includes a salary schedule, health insurance benefits, and a grievance procedure for disputes.

These examples illustrate how a collective-bargaining agreement is a legally binding contract that sets out the terms and conditions of employment for workers represented by a union. The agreement is negotiated between the union and the employer, and both parties must agree to its terms. The agreement can cover a wide range of issues, including wages, benefits, working conditions, and dispute resolution procedures.