What Is a Labor Union Contract?

Imagine the labor union and employer negotiating a workplace agreement and not having legal documentation to prove what both parties have agreed to. The employer would be powerless to compel an employee to do a job he did not want to do, if he claimed that it was not in his job description and the employer could not prove otherwise. On the other hand, the employer could terminate an employee without just cause. A labor union contract protects both the employer and the employee.

  1. Specifics

    • Wage and pay scales, vacation time, working hours, job descriptions, health insurance, and pension plans and other benefits are spelled out in a labor union contract.

    Leverage

    • Without the power of a labor union behind them, workers would have little power as individuals to force their employer to give them certain benefits, such as pensions and health care. Similarly, by giving in to some demands of the unions, the employers are guaranteed a reliable and dependable workforce.

    Warning

    • A labor union contract protects employers from being fired without good cause, and it may describe what constitutes good cause. This is typically listed in the grievance section of the contract.

    Time Frame

    • A labor union contract is only good for the time specified in the contract. Once the contract has expired, a new contract must be negotiated between the union and employer. Employees may have the right to stop work if they have no contract. However, this usually does not happen as long as both parties--labor and management--are negotiating in good faith on a new contract.

    Misconception

    • It is a misconception that all employees must join a union. This depends on the labor contract between your union and your employer. In a so-called "open shop," membership is completely optional; you are not required to join the union or to pay dues. If you are in an "agency shop," you have to pay union dues whether or not you join. Under a "union shop," you must join the union within a certain period of time after getting the job.

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