COLLECTIVE BARGAINING AGREEMENTS A collective bargaining agreement
collectively sets the terms on which an employer offers individual work
contracts to each of its employees in the bargaining unit. A bargaining
agreement, also herein referred to as a labor agreement, is a legally
enforceable written commitment, which states the rights and duties of all
parties involved. The labor agreement should be made in good faith and is
intended to be observed and not violated. The National Labor Relations Act
obligates employers and unions to bargain in good faith concerning terms and
conditions of employment, including hours and wages. Like any normal contract,
competent parties must enter into a labor agreement. However, a labor agreement
is unique from other legal contracts in that there is no consideration involved
and nothing tangible is exchanged. Many, but not all, unions require formal
ratification of a new labor contract by a majority membership acceptance, which
is determined through vote by the members. Until majority approval of those
voting in a ratification election is received, the proposed labor contract is
not final.
While each labor agreement is unique to the needs of an organization and its
employees, most agreements include five issues: (1) Management Rights, (2) Union
Security, (3) Wages and Benefits, (4) Individual Security (Seniority) Rights,
and (5) Dispute Resolution. Management Rights “Management” is the process of
working with people and resources to accomplish organizational goals by making
the best possible use of money, time, materials and people. The management
process, when properly executed, involves a wide variety of activities including
planning, organizing, directing and controlling. It is management’s role to
perform all of these functions in order to maximize results. Management
maintains the right to direct all business activities. In order to retain as
much authority as possible in the direction of the workplace, management has
sought to include certain provisions in collective bargaining agreements.
Management has no rights over individual people within the organization, but
does maintain rights to property, which are real and legally enforceable.
Management has sole discretion and flexibility in deployment and discipline
issues and maintains the right to assign measures to people within the company,
as it deems appropriate, as long as the language of the agreement does not
explicitly limit the action. A typical management rights clause reads as
follows: “The Company retains the exclusive right and responsibility to manage
the business and plants and to direct the working forces subject to the
provisions of this Agreement, including the right to hire, suspend, or discharge
for proper cause or transfer and the right to relieve employees from duty
because of lack of work or for other legitimate reasons.” The effect of the
management clause may be limited, in as much as, the company has a legal duty to
bargain about many matters and may be required to do so, regardless of the
employer rights clause in the agreement. Where there are rights, there are also
obligations. Union Security In 1947 Congress wrote into the Taft-Hartley Act
statutory provisions about union security. Union security clauses address status
of employee membership in the union and attempt to ensure that the union has
continuous strength. Nearly all contracts provide some type of union security
clause. Forms of union security are outlined below:
