What is the difference between a collective bargaining agreement and a labor contract?

In Maryland, Collective Bargaining Agreements (CBAs) and Labor Contracts are both legally binding labor agreements between employee unions and employers. However, there are some key differences related to the scope of each type of agreement. A CBA is a broader agreement between management and a union and governs the entire scope of working conditions, including wages, health benefits, and working hours. A CBA also outlines how grievances are handled and serves as a framework for how management and the union will interact. A CBA is typically negotiated between the two parties and is often subject to a ratification vote by the union members. A Labor Contract, on the other hand, is a more focused agreement between management and an individual employee. It usually stipulates a specific wage rate and other details of a particular employee’s job. A Labor Contract is usually between an employer and an individual employee and only covers a specific duration of time. In summary, Collective Bargaining Agreements are more comprehensive agreements between a union and employer that govern all aspects of the workplace. Labor Contracts, in contrast, are focused on an individual employee and the terms of their employment for a specific duration.

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What is the difference between a collective bargaining agreement and a labor contract?

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