A collective bargaining agreement (CBA) is the negotiated contract between an employer and the exclusive bargaining representative (the certified union) of its employees, covering wages, hours, benefits, and other terms and conditions of employment. Once a union is the recognized bargaining agent, the employer has a duty to bargain collectively in good faith. A CBA typically has a term of five years, but the economic provisions (like wages) are usually renegotiated after three years, while the representation aspect is fixed for the full five. Disputes over the interpretation or implementation of a CBA are resolved through the grievance machinery and, if unresolved, voluntary arbitration.
Where workers are unionized, their terms of employment are often set not individually but through a collective bargaining agreement (CBA) — the contract between the employer and the union.
What a CBA Is
A CBA is the negotiated agreement between an employer and the exclusive bargaining representative (the certified union) of the employees in an appropriate bargaining unit. It governs wages, hours of work, and other terms and conditions of employment, and typically includes grievance procedures, union security clauses, and benefits beyond the legal minimum.
The Duty to Bargain
Once a union becomes the recognized or certified bargaining agent, the employer has a duty to bargain collectively in good faith — to meet, negotiate, and try to reach agreement. Bargaining in bad faith (or refusing to bargain) can amount to an unfair labor practice. Good-faith bargaining does not require either side to agree to a proposal, but it does require genuine negotiation.
Term of the CBA
A CBA generally has a five-year term, but with an important split:
- The representation aspect (which union is the bargaining agent) is fixed for the full five years; and
- The economic provisions (wages and other monetary terms) are typically renegotiated after three years.
Timely renegotiation matters — there are rules on retroactivity depending on when a new agreement is reached.
Enforcing and Interpreting a CBA
Disputes about what a CBA means or how it is implemented are generally handled through:
- The grievance machinery set up in the CBA itself; and
- If unresolved, voluntary arbitration before a voluntary arbitrator, whose decision is generally final and binding.
This keeps most CBA disputes out of the regular labor litigation track.
Why a CBA Matters
A CBA can secure better-than-minimum terms, a clear grievance process, and stability. It binds both sides for its term. Employees covered by the bargaining unit generally enjoy its benefits, and there may be arrangements (consistent with law) regarding union membership and dues.
Practical Takeaways
- A CBA is the union-employer contract on wages, hours, and conditions;
- The employer must bargain in good faith with the certified union — refusal can be an unfair labor practice;
- Term is generally five years, with economic terms renegotiated after three, and disputes go through grievance and voluntary arbitration.
Frequently Asked Questions
What is a collective bargaining agreement? A CBA is the negotiated contract between an employer and the certified union representing its employees, covering wages, hours, benefits, and other terms and conditions of employment.
Does the employer have to bargain with the union? Yes. Once a union is the certified bargaining agent, the employer has a duty to bargain collectively in good faith. Refusing or bargaining in bad faith can be an unfair labor practice, though neither side is forced to agree.
How long does a CBA last? Generally five years. The representation aspect is fixed for the full five years, while the economic provisions like wages are usually renegotiated after three years.
How are CBA disputes resolved? Through the grievance machinery in the CBA and, if unresolved, voluntary arbitration before a voluntary arbitrator, whose decision is generally final and binding.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.