What is a collective bargaining agreement?
CLA stands for collective bargaining agreement and is a written agreement in which 1 or more employers, 1 or more employer organizations and 1 or more employee organizations (usually unions)have agreed on terms and conditions of employment. This can be about wages, allowances or working hours. Unlike the personal labor agreement, a collective bargaining agreement applies to a larger group of employees.
Why a collective bargaining agreement?
But why should organizations or industries have a collective bargaining agreement? A collective bargaining agreement is not made just for the employer; it is there precisely for the employee. For example, wages may be higher than the national minimum wage or an employee may get more vacation days than legally agreed upon. By the way, these agreements are never against the law. So it cannot be the case that the agreed wage is lower than the minimum wage.
