What is a collective bargaining agreement?

A collective bargaining agreement is indeed a legal written contract between organized labor, typically represented by a union, and an employer. This agreement outlines the terms and conditions of employment, including wages, hours, working conditions, and other benefits. It is the result of negotiations between the two parties, with the purpose of establishing mutual commitments and ensuring clear communication regarding the rights and responsibilities of both employees and the employer.

The significance of this agreement lies in its enforceability in a legal context, meaning that both parties must adhere to the outlined terms. Collective bargaining agreements are formalized documents that provide stability and predictability in the labor-management relationship.

In contrast, informal understandings, verbal agreements, or guideline documents lack the formal commitment and legal weight that a collective bargaining agreement carries, making them less reliable and potentially subject to misunderstanding or unilateral changes by either party.