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Hazantown Agreement: A special agreement used in the garment industry between a jobber (a company that sells clothes) and the contractors that make the clothes. This agreement makes sure that the jobber only uses contractors that have unions, pays their workers fairly, and contributes to their benefits. It doesn't cover the jobber's own employees. The name comes from a company called Hazantown, Inc. that was involved in a legal case about this type of agreement.
A Hazantown agreement is a type of collective-bargaining agreement used in the garment industry. It governs the relationship between a jobber and the contractors that produce the jobber's garments. The agreement does not govern the relationship between the jobber and its own employees.
The Hazantown agreement includes agreements that the jobber will use only unionized contractors, will ensure that salaries and bonuses are appropriately paid, and will contribute to employee-benefit funds maintained on behalf of the contractor's employees.
For example, Hazantown, Inc. was involved in Danielson v. Joint Bd. of Coat, Suit & Allied Garment Workers' Union, 494 F.2d 1230 (2d Cir. 1974). The Hazantown agreement in this case ensured that the jobber only used unionized contractors and contributed to employee-benefit funds for the contractor's employees.
Another example of a Hazantown agreement is between a jobber and a contractor that produces t-shirts. The agreement may state that the jobber will only use contractors that pay their employees a fair wage and provide benefits such as healthcare and retirement plans.