Definition of Collective Bargaining Agreement
What is a collective bargaining agreement? What is the definition of the term collective bargaining agreement?
If you belong to a union and/or are a fan of sports, you have likely heard the term "collective bargaining agreement" many times throughout your life.
A collection bargaining agreement occurs when two sides (the employers and the employees/group representing the employees) voluntarily come together to work out an employment agreement. This agreement will cover wages, benefits, etc.
Employees are represented by their union in collective bargaining negotiations.
![Definition of Collective Bargaining Agreement - Financial Dictionary - Sports](https://www.davemanuel.com/images/def_collective_barg_agr.gif)
Let's look at an example of a collective bargaining agreement.
In Major League Baseball you have the owners and the players. The players are represented by a union, while the owners are represented by the commissioner of the league.
When a collective bargaining agreement expires, another one must be agreed to. Both owners and players want more money, so usually there will be a round of contentious negotiations before an agreement is struck. In some cases, job action will be taken in the form of a lockout or strike.
The 1994-95 Major League Baseball season was partially lost due to a strike, with the World Series eventually being wiped out. This strike alienated millions of fans, and it took the MLB at least a decade to fully recover.
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