Examples of Bargaining Agreement

When it comes to the relationship between an employer and their employees, one of the most important documents that governs the terms of that relationship is a bargaining agreement. A bargaining agreement is a legally binding contract between an employer and a labor union that outlines the terms and conditions of employment for all covered employees. If you`re curious about the types of provisions that may be included in a bargaining agreement, here are some examples.


One of the most important factors for most employees is how much they get paid, so it`s no surprise that compensation is often a major topic of negotiation between employers and labor unions. A bargaining agreement may include provisions about how wages will be determined, including factors like seniority, education, and experience. It may also include rules around overtime compensation, shift differentials, and any bonuses or incentives that employees will receive.


In addition to salary, many employees also value benefits like health insurance, retirement savings plans, and disability coverage. A bargaining agreement may include provisions that specify what benefits employees will receive and how much the employer will contribute towards them. For example, a union might negotiate for a “defined benefit” pension plan that guarantees a certain level of income for retirees, or for a certain percentage of health insurance premiums to be covered by the employer.

Working conditions

Other key areas that may be addressed in a bargaining agreement are the working conditions that employees will be subject to. This can include things like the number of hours they will work each week, the amount of notice they will receive before being required to work overtime, and any safety rules or equipment that must be provided by the employer. The agreement may also include provisions about how grievances will be handled, such as a process for filing complaints or a system for resolving disputes.

Job security

Finally, a bargaining agreement may include provisions that address job security for employees. This can be especially important in industries that are subject to fluctuations in demand or where layoffs are common. The agreement might include provisions around rehiring employees who have been laid off, restrictions on outsourcing or subcontracting, or mandatory severance pay for employees who are let go.

These are just a few examples of the types of provisions that might be included in a bargaining agreement. Ultimately, the details of each agreement will depend on the specific needs and priorities of the employer and the employees involved. However, by negotiating the terms of the agreement in advance, both parties can establish clear expectations and avoid misunderstandings or disputes down the road.