Components of a Labor Contract
Note: While some contracts will have all of these articles and perhaps a few more, some contracts may not address all of those cited. In some cases, two or more of the following may be combined.
Preamble |
Contracts often begin with a Preamble stating the purpose of the contract and a section spelling out definitions used within the contract. |
The Recognition Clause |
This is an item usually appearing at or near the beginning of a labor contract. Its function is to give recognition to the union, as the representatives of the employees, entitled to bargain in their behalf. |
Union Security |
Once again, this is often one of the first topics in a labor agreement. While "negotiated," the union security clause essentially provides that the union continues to exist and will be allowed to fulfill its functions. It will also typically identify the type of union activity within the organization (i.e., closed or open shop). |
Dues Check off Provision |
Perhaps contained in one of the previous elements, many contracts do contain provision for "dues check off." This means, that with the individual employee's permission, the payroll office will automatically deduct membership dues from the employee's paycheck. |
Union Rights and Responsibilities |
Sometimes the above items are included in a broader article such as Union Rights and Responsibilities. An article with this as the subject would also likely include discussion of union representatives (e.g. stewards and participants in labor – management meetings, time off from regular duties for union activities and other related items. |
Employee Rights and Responsibilities |
This article will address the basic rights of the individual as specified in state and federal law and the right to reasonable notice and opportunity to meet with the administration and confer on matters within the scope of representation. |
Non-Discrimination/Sexual Harassment/ Coercion and Intimidation Article |
Many contracts today address these topics up front and in a stand-alone article. While typically reflective of policies already in place, these issues may be included within the contract particularly to address issues such as being the subject of or participating in investigations and absence from repercussion from reporting or testifying to such behaviors during a filing or during the investigation. |
Other Organizational Policies |
Many contracts will cite other policies of the organization by which union members agree to abide whether by name, reference, or summary. |
Management Rights |
Most labor contracts have an article dealing with management rights. How detailed or elaborate this article might be depends. Generally, management rights entail issues surrounding three main areas: the right to determine the mission, goals and objectives of the organization (i.e., direction of the organization); the right to determine the uses to which the material resources of the organization are put (scheduling employees, assigning employees, supervising employees, determining location of physical resources, etc); and the power to discipline for cause. |
Compensation and Benefits |
While anything related to "conditions of employment" is typically negotiable, compensation and benefits is typically one of the "biggest" items negotiated. It is usually one of the larger articles in the contract. There are a variety of issues falling into this domain. Some typical examples of items covered include wage and salary scales or schedules for the various positions represented, hours of work and work schedules, overtime issues (including such things as how overtime is determined), holidays, vacation days, sick leave, jury pay, other types of leave and perhaps, layoff or severance pay. (Often times the citing of these issues parallels those of the larger entity, assuming the service falls under a city or county jurisdiction). |
Union / Management Meetings |
Because labor management committees or groups have been so effective in resolving interim frustrations regarding the contract, contract interpretation, etc. many contracts now contain specific articles addressing union/management teams, committees, and/or meetings. Such articles may specify what positions will serve as representatives for each side or how those representatives will be chosen, the frequency of such meetings, authority of such teams, and other issues relating to their organization and functioning. |
Grievance Procedures |
Virtually all negotiated contracts contain fairly elaborate protocol regarding discussion of grievances. Such articles usually start with a definition of a grievance, bases for grievances, and the employee's grievance rights/ union representation along with the actual steps / procedures in the grievance process. Many grievance articles also address such things as grievance files, the use or non-use of recording devices, and withdrawal of grievances. Sometimes contracts will specifically address the grievance rights – or lack thereof – for probationary employees. |
Other Common Topics of Contract Articles |
While not necessarily in each agency's contract, some other topics likely to appear include such things as educational and training benefits, health and safety issues, uniform allowances, use of jurisdictional vehicles, and a variety of other items. Sometimes these and miscellaneous items are contained within other articles. |
Term of Agreement |
Contracts typically conclude with stipulations regarding the availability of contracts (how they can be accessed) and the term covered by this agreement. Effective dates and ending dates are specified. While not universal, the duration of a typical contract is three years. Some cover one year; others remain in effect for five years. This is of course is followed by the signatures of union representatives and management representatives. |
Appendices |
There may be any number of attachments to the contract for reference. |
Agreement and Ratification |
Before the contract becomes final, it must be approved by the union membership and by management. Regarding union ratification, a ratification election is held (i.e., vote on the proposed contract) and generally speaking a majority of those voting in the election must vote in favor of the document prior to its official approval by the union. Similarly, "management" must approve the contract. In the public sector, of course, this is typically a city council, a board of commissioners, a county board, or other public representative. Once it is ratified and accepted by both sides, it becomes a legally binding document for labor relations for both sides during the designated period. |
FESHE Course: Personnel Management for the Fire and Emergency Services, Version 1.0, Winter 2007©
Page last updated:
November 20, 2007