Before proceeding, please review the  legal disclaimer.

What Is a Collective Bargaining Agreement (CBA)?

In many workplaces, employees do not negotiate their wages, benefits, or working conditions on their own. Instead, those terms are negotiated collectively through a union. The result of that negotiation is called a Collective Bargaining Agreement, commonly known as a CBA.

Understanding what a CBA is—and how it works—can help employees better understand their rights, obligations, and protections at work.

Definition of a Collective Bargaining Agreement

A Collective Bargaining Agreement (CBA) is a legally binding contract between an employer and a labor union that represents a group of employees.

The CBA sets the terms and conditions of employment for covered workers, including pay, hours, benefits, and workplace rules. Once agreed upon, both the employer and the union are required to follow it.

Who Is Covered by a CBA?

A CBA typically applies to:

• Employees who are members of the union

• Employees in positions included in the bargaining unit

Not all employees at a company are necessarily covered. Supervisors, managers, and certain other roles are often excluded.

What Does a CBA Typically Cover?

While every agreement is different, most CBAs address core workplace issues such as:

Wages and Pay Structure

CBAs often specify:

• Hourly wage rates or salary scales

• Overtime pay rules

• Shift differentials

• Raises or step increases

Hours and Scheduling

A CBA may regulate:

• Work hours

• Overtime assignments

• Breaks and meal periods

• Scheduling procedures

Benefits

Benefits commonly addressed include:

• Health insurance

• Retirement plans

• Paid time off

• Sick leave

• Holidays

Job Duties and Work Rules

CBAs often define:

• Job classifications

• Seniority systems

• Training requirements

• Safety rules

Discipline and Termination

One of the most important features of a CBA is that it often limits an employer’s ability to discipline or terminate employees.

Many CBAs require:

• Just cause for discipline or termination

• Progressive discipline procedures

• Fair investigation standards

Grievance and Arbitration Procedures

CBAs usually establish a formal process for resolving workplace disputes.

This process may include:

• Filing grievances

• Internal hearings

• Arbitration before a neutral decision-maker

Employees covered by a CBA often must use this process instead of going directly to court.

How Is a CBA Negotiated?

CBAs are negotiated through a process called collective bargaining, where:

• The union represents employees

• The employer represents management

• Both sides negotiate terms

• Agreements are typically time-limited and must be renewed

Negotiations may involve compromises on both sides.

How Long Does a CBA Last?

Most CBAs last for a specific period, often several years. Once expired, the parties may:

• Negotiate a new agreement

• Extend the existing agreement

• Engage in bargaining or mediation

Some terms may continue temporarily while negotiations are ongoing.

How a CBA Affects Individual Employee Rights

Employees covered by a CBA often have stronger protections than at-will employees, including:

• Greater job security

• Predictable wages and schedules

• Clear dispute resolution processes

However, CBAs may also limit individual negotiation and require disputes to be handled through union procedures.

CBA vs. At-Will Employment

In non-union workplaces, employees are often at-will, meaning employers can change terms or terminate employment with limited restrictions.

A CBA replaces many at-will rules with negotiated protections, creating more structured employment terms.

What Happens If a CBA Is Violated?

If an employer violates the CBA, the union may:

• File a grievance

• Demand arbitration

• Seek legal enforcement

Employees typically cannot bypass the union’s role in enforcing the agreement.

Final Takeaway

A Collective Bargaining Agreement (CBA) is a powerful tool that defines the rights and responsibilities of both employers and unionized employees. It sets clear rules for wages, working conditions, discipline, and dispute resolution.

Understanding the terms of a CBA can help employees better navigate workplace issues and know what protections they have under their union contract.