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Labor & Employment

Labor Agreement

Labor agreements are negotiated in cycles: a first contract after a union is recognized, renewals as each agreement nears its end, and side agreements in between when something new comes up.

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01 GUIDE

Labor Agreement: what usually happens

First contracts and renewals

A first agreement after a union is certified tends to take the longest, because every term starts from nothing and both sides are setting patterns that will last. Renewals usually build on the existing contract, with bargaining focused on wages, health benefits, scheduling, and whatever disputes arose under the old terms. Federal labor law requires both sides to bargain in good faith over mandatory subjects, which does not require either side to agree to any particular proposal. Information requests, ground rules, and the timing of proposals often matter as much as the proposals themselves. Each side should keep a clear record of proposals and responses. In construction, project labor agreements set terms for a specific project and work somewhat differently.

When the agreement expires

Expiration does not usually mean the terms disappear overnight. In the private sector, many terms continue while bargaining goes on, although some provisions do not survive automatically, and the rules on what an employer may change before reaching an impasse are technical. For New York public employers, state law generally keeps the terms of an expired agreement in place until a new one is reached. Strikes, lockouts, and unilateral changes carry significant legal risk and should not be decided without advice. Public employees in New York are barred from striking under the Taylor Law.

Changes during the term

Operations change mid-contract through new technology, relocation, restructuring, or a sale of the business, and the agreement may or may not address the change. Whether management can act on its own, must bargain first, or must bargain only over the effects depends on the contract language and the subject. Side letters and memoranda of agreement are common tools, but they should be drafted as carefully as the main contract, since they are read together later. We review the agreement, the bargaining history, and the planned change, and outline the obligations before any announcement is made.

02 ATTORNEYS

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Attorney Advertising. This page is general information about labor agreement and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.