Legal Definitions - CBA

CBA stands for Collective-Bargaining Agreement.

A Collective-Bargaining Agreement (CBA) is a formal, written contract between an employer (or a group of employers) and a labor union that represents a specific group of employees. This agreement is the outcome of a negotiation process called collective bargaining, where the union advocates on behalf of its members. The CBA outlines the terms and conditions of employment for all employees covered by the agreement, typically including provisions related to wages, hours, benefits (like health insurance and retirement plans), working conditions, job security, and procedures for resolving disputes or grievances.

• Example 1: Manufacturing Plant Workers

  After several weeks of negotiations, the union representing the assembly line workers at a large automotive factory and the company management finalize a document that specifies new hourly wages, overtime rules, health insurance contributions, and the process for addressing workplace safety concerns for the next three years. Both parties sign this document, making it legally binding.

  This document is a CBA because it is a comprehensive contract established between the employer (the automotive factory) and the labor union, setting the specific terms and conditions of employment for all unionized workers on the assembly line.

• Example 2: Professional Sports League

  The Players' Association for a major professional baseball league reaches an agreement with the league owners on a new contract. This contract details minimum player salaries, rules for free agency, the structure of the player draft, and how revenues from merchandise and broadcasting will be shared. This agreement governs the employment terms for all players in the league for the next five seasons.

  This agreement functions as a CBA as it is a formal, negotiated contract between the union representing all professional baseball players (the Players' Association) and the employers (the league's team owners), dictating the fundamental aspects of player employment and league operations.

• Example 3: Public School Teachers

  The local teachers' union for the Sunnydale School District successfully negotiates a new contract with the school board. This contract specifies teacher salary schedules, maximum class sizes, the number of professional development days, and the grievance procedure for teacher complaints over the next four academic years. Once ratified by both sides, it becomes the governing document for all teachers in the district.

  This formal document is a CBA because it represents a binding agreement between the school district (the employer) and the teachers' union (representing the employees), clearly defining the terms of employment for all teachers within that district.