Collective Labor Agreement Law and Legal Definition

Collective labor agreement is a contract between the employer and the employees acting through the agency of the representative organization or group. It is also referred to as collective bargaining agreement or trade agreement.

“A trade agreement, or a collective labor agreement, is a term used to describe a bargaining agreement entered into by a group of employees, usually organized into a brotherhood or union, on one side, and a group of employers, or a corporation, as a railroad company, on the other side. Such agreement may be a brief statement of hours of labor and wages, or, on the other hand, it may take the form of a book, or often an exhaustive pamphlet regulating, in the greatest minuteness, every condition under which labor is to be performed, and touching upon such subjects as strikes, lockouts, walkouts, seniority, apprentices, shop conditions, safety devices, and group insurance.” [Rentschler v. Missouri P. R. Co., 126 Neb. 493 (Neb. 1934)].