Collective agreement, also referred to as a collective bargaining agreement (CBA), is a legal contract that is negotiated between a labor union or employee representatives and an employer. The agreement outlines the terms and conditions of employment, including wages, benefits, working hours, and other working conditions. In this article, we will explore the definition of the term collective agreement in further detail.
A collective agreement sets out the terms under which employees work, how they are paid, and what benefits they are entitled to receive. The agreement is a legally binding contract between the union (or employee representatives) and the employer, and it generally covers a specific time period, such as one to five years. The terms of the agreement are negotiated, and both parties must agree to the terms before the agreement is signed.
There are many benefits to having a collective agreement, such as improved working conditions, increased job security, and better wages and benefits. In addition, a collective agreement can provide a framework for resolving disputes between the employer and employees.
Collective agreements can be industry-specific or company-specific. For example, in industries such as construction or manufacturing, unions often negotiate with employers on behalf of their members to secure a collective agreement that covers all workers in the industry. In contrast, in other industries such as healthcare or education, unions may negotiate separate collective agreements with individual employers.
It is important to note that collective agreements are legally binding contracts and must be followed by both parties. If either party violates the terms of the agreement, the other party may take legal action to enforce the contract.
In conclusion, a collective agreement is a legal contract negotiated between a labor union or employee representatives and an employer. The agreement sets out the terms and conditions of employment, including wages, benefits, working hours, and other working conditions. It is a legally binding contract that must be followed by both parties, and it can provide numerous benefits to employees, including improved working conditions, job security, and better wages and benefits.