Simple Definition of Collective Bargaining Agreement

Collective bargaining agreement, also known as CBA, is a legally binding agreement between an employer and a group of employees, typically represented by a labor union. Its purpose is to establish the terms and conditions of employment, including wages, benefits, working hours, job security, and other labor-related matters.

The process of collective bargaining involves negotiations between the employer and the union representatives, who work together to reach a mutually acceptable agreement. Once the agreement is reached, it is presented to the employees for ratification before it can be implemented.

A collective bargaining agreement helps to ensure that workers are treated fairly and equitably, and that they have a say in their working conditions. It also provides job security and stability, as well as a mechanism for resolving disputes between the employer and employees.

In addition to benefits for workers, collective bargaining agreements can also be beneficial for employers. By negotiating with a union, an employer can establish consistent standards across all employees, which can lead to increased productivity and profitability. It also helps to avoid costly and disruptive labor disputes, which can damage a company`s reputation and bottom line.

Overall, a collective bargaining agreement is an important tool for both employers and employees, as it helps to establish clear expectations and standards for employment. By working together through the collective bargaining process, employers and employees can create a more productive and harmonious workplace.