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 referred to as a labour agreement, is a legally enforceable written commitment, which states the specific rights and duties of all parties involved. The “National Labour 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 labour agreement, however this type of a

greement 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 labour contract by a majority membership acceptance, which is determined through a vote by the members. Until majority approval of those voting in a ratification election is received, the proposed labour contract is not final.

Wages and benefits deal directly with the amount of compensation an employee can receive, and the processes through which these benefits can be awarded. Ordinarily one may think of pay as wages or salaries, which in fact are the most important forms of compensation, but there are additional forms of compensation. Employee benefits such as pensions and health insurance, paid holidays, vacations and sick leave are extremely important aspects in the bargaining process between labour and employers.

Maintenance of membership is a mild form of union security that imposes no obligation on an employee to join a union but merely the obligation to remain a member in good standing for the duration of the collective bargaining agreement if an employee has already joined a union. There is a system called checkoff that is occasionally used whereby an employer deducts union dues from the employees’ paycheck and transfers the funds to the union. Some criticize this because they feel it infringes upon the rights of the worker. Even with this being said, this practice still occurs in today’s business world.

Disputes over wages and working conditions are by far the major causes of work stoppages and inevitably these disputes will arise during the life of a contract. As a result, most contracts contain specific clauses describing how disputes are to be resolved. A “no-strike” clause is a contract provision in which the union agrees to refrain from calling a work stoppage during the term of the collective bargaining agreement. In return for a no-strike pledge, the union will typically ask for a provision on the part of the company, to not engage in lockouts during the term of the contract. A lockout is an economic pressure tactic of an employer during negotiations, which consists of the withholding of work. Lockouts may also be an illegal attempt to discourage union activity. Strikes and lockouts are probably the most visible evidence of labour disputes and are forms of economic warfare. As such, they often bring severe losses to those engaged in them as well as inconveniencing other parties involved. In some instances, strikes and lockouts disrupt the provision of products or servi

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