A collective agreement, also known as a collective bargaining agreement (CBA), is a legally binding contract between an employer and a trade union that outlines the terms and conditions of employment. It is negotiated through a process of collective bargaining between the employer and the union representing the employees.

Collective agreements cover various aspects of employment, such as wages, hours of work, overtime, holidays, sick leave, health and safety, and job security. They also outline the procedures for resolving disputes between employees and employers.

The purpose of a collective agreement is to establish a mutually agreed-upon set of rules and regulations that apply to all employees covered by the agreement. It provides a framework for fair and consistent treatment of all employees and ensures that they are compensated fairly for their work.

Collective agreements are typically negotiated for a set period of time, usually two to four years, before they are renegotiated. During the negotiation process, both parties will propose their terms and negotiate until they reach a mutually acceptable agreement.

In many countries, including Canada and the United States, collective agreements are governed by labor laws that provide the legal framework for the negotiating process. These laws set out the requirements for bargaining in good faith, the procedures for resolving disputes, and the rights and obligations of both parties.

Employers and unions both benefit from collective agreements. For employers, they provide a stable and predictable framework for managing their workforce, which can help to reduce labor costs and increase productivity. For unions, collective agreements provide a means to protect their members’ rights and improve their working conditions.

In summary, a collective agreement is a legally binding contract between an employer and a trade union that outlines the terms and conditions of employment. It is negotiated through a process of collective bargaining and covers various aspects of employment, including wages, hours of work, and job security. Collective agreements benefit both employers and unions by providing a stable framework for managing the workforce and protecting workers’ rights.