collective bargaining agreement
Definition
A collective bargaining agreement is a written contract between an employer and a labor union that spells out the terms and conditions of employment for the workers that union represents. It covers things like wages, working hours, benefits, safety rules, and how disputes between workers and management get resolved. Both sides negotiate this contract together, and once signed, everyone must follow it for the length of the agreement.
Example
If you run a manufacturing shop where workers have unionized, you would negotiate a collective bargaining agreement with their union that might lock in wage rates and overtime rules for the next three years.
Watch Out
If your workers ever vote to unionize, you are legally required to negotiate in good faith toward a collective bargaining agreement, and refusing to do so can result in serious federal labor law violations.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.