Def of Collective Agreement

A collective agreement is a legally binding agreement between an employer and a union that outlines the terms and conditions of employment for employees who are members of the union. The agreement typically covers issues such as wages, benefits, hours of work, job security, and grievance procedures.

Collective agreements are negotiated through the collective bargaining process, which involves the union representing the employees and the employer representing the company’s management. During negotiations, both sides come to the table with their proposals and negotiate until they reach an agreement that they are both satisfied with.

Once the collective agreement has been signed, it becomes the governing document for the terms and conditions of employment for the employees covered by the agreement. The agreement must be followed by both the employer and the employees.

Collective agreements are important for both employers and employees. For employers, collective agreements provide stability and predictability in terms of labor costs and working conditions. For employees, collective agreements provide job security, fair wages, benefits, and protection against unfair treatment.

In addition to the benefits outlined above, collective agreements also help to promote positive labor-management relations. By negotiating in good faith and coming to an agreement that satisfies both parties, employers and unions can build trust and mutual respect.

Overall, collective agreements are an important part of the employment relationship for both employers and employees. They provide stability, fairness, and protection, and help to promote positive labor-management relations. If you are an employee covered by a collective agreement, it is important to familiarize yourself with the terms and conditions of the agreement and to follow them carefully.