Legal Definitions - collective-bargaining agreement

A collective-bargaining agreement (CBA) is a formal, legally binding contract established through negotiations between an employer and a labor union. This agreement outlines the terms and conditions of employment for a group of employees represented by the union, covering essential aspects such as wages, benefits, working hours, job security, and procedures for resolving workplace disputes. It serves as the governing document for the employment relationship between the employer and its unionized workforce.

• Example 1: Automotive Manufacturing Plant
  The United Auto Workers (UAW) union negotiates a CBA with a major car manufacturer. This agreement specifies the hourly wages for assembly line workers, the company's contribution to employee health insurance and retirement plans, the number of paid vacation days, and detailed safety protocols for operating machinery. It also establishes a multi-step grievance procedure for employees to address concerns about disciplinary actions or unsafe working conditions.

  How this illustrates the term: This scenario demonstrates a CBA as a contract between an employer (the car manufacturer) and a union (UAW) that regulates employment conditions (safety protocols, vacation days), wages (hourly rates), benefits (health insurance, retirement), and grievances (the multi-step procedure) for its unionized workforce.

• Example 2: Municipal Fire Department
  The local firefighters' union negotiates a CBA with the city government. This agreement defines the shift schedules for firefighters, sets minimum staffing levels for each firehouse, outlines the annual salary increases for different ranks, and details the retirement benefits package. It also includes provisions for mandatory training and professional development, as well as a seniority-based system for promotions and transfers.

  How this illustrates the term: Here, the CBA is a contract between the city (employer) and the firefighters' union. It covers employment conditions like shift schedules and staffing levels, wages (salary increases), benefits (retirement), and other terms such as training and promotion criteria, all agreed upon through collective bargaining.

• Example 3: National Airline Company
  The pilots' union for a major airline negotiates a CBA with the airline management. This agreement establishes pilot salaries based on aircraft type and flight hours, defines rules for flight scheduling and rest periods, outlines health and dental benefits, and details the process for addressing pilot fatigue or other safety concerns. It also includes provisions for job security in case of airline mergers or economic downturns.

  How this illustrates the term: This example shows a CBA as a contract between the airline (employer) and its pilots' union. It regulates wages (pilot salaries), employment conditions (flight scheduling, rest periods, safety concerns), benefits (health, dental), and job security, all negotiated to govern the working relationship for the pilots.