Labor Union contracts are multiyear, bilateral agreements between the labor Union and the employer. A labor Union contract codifies the terms and conditions of employment for Union members, as well as the employer’s obligations and responsibilities. Union members refer to their Union contracts when they have questions about their wages, how much the company is paying for benefits or what steps to take when they disagree with their supervisor’s decisions.

Collective Bargaining

A labor Union contract is also called a collective bargaining agreement. The negotiation process for labor Union contracts involves two committees — one that represents the interests of Union members and another that represents management’s interests. The labor Union committee is usually a combination of employees, Union representatives, and at times, legal counsel. The employer’s committee may consist of human resource representatives, local managers, directors, owners, as well as their own legal counsel. Collective bargaining is the term used to describe the negotiation process specifically used for labor Union contracts, or collective bargaining agreements.

Main components of a Collective Bargaining Agreement

1. WAGES: (pay, bonuses, stipends for certifications, etc.).

2. BENEFITS: (medical, pension, dental, optical, life).

3. WORKING CONDITIONS: (work rules and procedures, employee productivity, mechanisms for discussing workplace problems).

4. JOB PROTECTIONS: (right to a fair, independent hearing process if unfairly disciplined or terminated, right to layoff and recall seniority rules, right to negotiate disciplinary procedures).

5. TIME-OFF: (vacations, sick and personal days, holidays, funeral leave, jury duty).