What Is a Collective Bargaining Agreement?

A collective bargaining agreement (CBA), also known as a union contract, is a written legal contract between an employer and a union representing employees. This agreement results from an extensive negotiation process covering essential topics such as wages, work hours and employment conditions.

There are three categories of subjects that a collective bargaining agreement can cover: mandatory subjects, voluntary or permissive subjects, and illegal subjects.

• Mandatory Subjects: These are required by law and the National Labor Relations Board (NLRB). They include topics such as wages, overtime, bonuses, grievance procedures, safety and work practices, seniority, and procedures for discharge, layoff, recall, or discipline.

• Voluntary or Permissive Subjects: These may be negotiated but are not required. Examples include topics such as internal union matters and the composition of the employer's board of directors.

• Illegal Subjects: These are topics that would violate the law and are therefore prohibited, such as closed shops (where an employer hires only union members) or illegal discrimination.

During the collective bargaining process, employers are legally required to provide certain information to the union, such as wage data and safety records, to facilitate negotiations in good faith. Providing accurate and timely information helps ensure transparency and fosters a collaborative relationship between the parties.

It is important to note that once a CBA is reached, both the employer and the union are required to abide by the agreement. Therefore, employers should seek legal counsel before participating in the collective bargaining process.