What terms and conditions of employment are an employer and union required to negotiate and incorporate into a collective bargaining agreement?

Author: Irene Stavrellis Englert, Englert Legal Consulting, LLC

An employer and a union are required to negotiate any subject that relates to wages, benefits or other terms and conditions of employment. As a result, both parties must discuss and reach an agreement on each of those terms. If the parties are unable to reach an amicable agreement, then negotiations may reach impasse.

Examples of mandatory subjects of bargaining include the following:

  • Wages, including:
    • Hourly rates;  
    • Piece rates or incentive wage plans;
    • Overtime;
    • Shift differentials;
    • Paid vacations;
    • Holidays;
    • Severance pay;
    • Regularly recurring, non-discretionary bonuses;
    • Pensions;
    • Health and welfare insurance plans;
    • Profit sharing/stock purchase plans;
    • Merit pay increases;
    • Workplace meal prices;
    • Employer provided meals and coffee; and
    • Employer provided transportation.
  • Hours of the day and days of the week on which employees are required to work, including:
    • Length of work day;
    • Breaks;
    • On call work days; and
    • Compensation time systems.
  • "Other terms and conditions of employment," including:
    • Grievance procedures;
    • Arbitration;
    • Management rights;
    • No strike/no lockout clauses;
    • Layoffs;
    • Recalls;
    • Seniority, promotions and transfers;
    • Termination and discipline;
    • Work rules;
    • Physical exams; and
    • Duration of collective bargaining agreement.