A collective bargaining agreement, or CBA, is a legal contract between an employer and a union representing the employees. In the United States, CBAs are used in a variety of industries to negotiate wages, benefits, and other working conditions.
The National Labor Relations Act of 1935 established the legal framework for the use of CBAs in the United States, and since then they have become a common tool for unionized workers to negotiate with their employers. In order for a CBA to be legally binding, it must be ratified by both the union and the employer.
Among the many issues that can be negotiated in a CBA are wages, hours, and working conditions. Other topics that may be addressed include pensions, health care benefits, sick leave, and vacation time. The specifics of each CBA will vary depending on the industry and the union involved.
One of the key benefits of a CBA for workers is that it gives them a degree of collective bargaining power that they would not have as individual employees. By negotiating as a group, workers can often secure better wages and benefits than they would be able to on their own.
Employers also benefit from CBAs, as they offer a degree of predictability and stability in labor relations. By agreeing to a CBA, employers can avoid the uncertainty of individual negotiations with employees and unions.
Of course, not all CBAs are created equal, and there can be disagreements between unions and employers over the terms of a particular agreement. In some cases, this can lead to strikes or other forms of labor unrest.
In recent years, there has been some controversy over the use of CBAs in certain industries, particularly in the public sector. Some critics argue that public sector unions have too much bargaining power and often negotiate excessively generous contracts that can be difficult to sustain over time.
Despite these challenges, the use of CBAs remains a common practice in many industries in the United States. They offer a valuable tool for negotiating fair wages and working conditions for millions of workers across the country.