Also known as a Bargaining Agreement, Union Contract, or Employer-Union Contract, a Collective Bargaining Agreement is an explicit employment contract negotiated by a labor union and employers who employ the union members. Collective bargaining agreements are typically renegotiated periodically.

Collective bargaining consists of the process of negotiation between representatives of a union and employers (represented by management, in some countries by employers’ organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions and grievance-procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a Collective Bargaining Agreement (CBA) or as a Collective Employment Agreement (CEA).

A typical Collective Bargaining Agreement (”CBA”) will contain a preamble that acknowledges the existence of the union as the exclusive bargaining agent for the employees, the date of the agreement, and any employees that are excluded from the bargaining unit. Other provisions cover management rights, grievance procedures, and layoffs. The agreement usually addresses the issue of layoffs in connection with seniority. Topics such as hours of work, benefits, and workers’ health and safety are also usually included. Collective Bargaining Agreements are long, complex agreements that have a huge effect on the rights of workers.

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