Content of a Collective Agreement
A collective agreement is a legally binding contract entered into between employees and management of an organization or business. The agreement, or contract, is drafted after an extended period of negotiation between both parties. Employees covered by a collective agreement are almost always unionized. The collective agreement establishes a wide range of working conditions within the workplace.
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Negotiation
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Collective agreements apply for a set number of years. At the end of this period, a collective agreement comes up for renewal. If both the union representing employees and management are satisfied with the contract, it may be renewed without changes. However, disputes are likely to arise, such as when a union argues for improved working conditions, or a company seeks to cut labor costs. Such disputes are almost always resolved, whether through arbitration, mediation or occasional work stoppages or lockouts.
Wages and Hours
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The most important, and sometimes contentious, elements of a collective agreement include wages and working hours. Collective agreements will establish the base wages or salaries for various positions, and will usually specify potential wage increases. These issues are required by law to be included in a collective agreement. Hours of work are also included, establishing rules for overtime pay, holiday benefits, break times and related issues.
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Firing
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Other important components of a collective agreement are the criteria for layoffs and firing. The concept of "just cause" is included in these contracts, and requires the employer to provide a valid reason for terminating or suspending an employee. This will also often require an employer to issue written warnings to an unsatisfactory worker, and union representatives may be brought in to mediate. Conditions vary from contract to contract. Without this provision, workers can often be terminated virtually at will by an employer. There are often antidiscrimination clauses included in a collective agreement as well.
Additional Clauses
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Many other clauses may be included in a collective agreement, which are important for establishing working conditions. Health and safety rules are increasingly becoming a part of collective agreements, which allow for union inspections of a workplace, or the right of an employee to refuse work he or she deems unsafe. Medical and health insurance plans are almost always included. Along with these are added benefits that unions usually fight to include such as shift differentials and shift premiums for working on Sundays. Many other issues may also be included.
Disputes
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Another key component in a collective agreement is the no strike/no lockout clause, which prohibits union members from conducting work stoppages, and prevents management from locking out employees. This serves as a guarantee to both management and employees that the workplace will function normally. When disputes do arise, procedures in the collective agreement allow for an employee to use the union to file grievances against management. If the two parties cannot resolve a disagreement, sometimes these issues are taken to the National Labor Relations Board.
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References
- Photo Credit signing a contract image by William Berry from Fotolia.com
