A union contract, also known as a collective bargaining agreement (CBA), is a legally binding agreement between a labor union and an employer that outlines the terms and conditions of employment for the unionized employees. It is negotiated through a process called collective bargaining, where representatives from the union and the employer negotiate and reach an agreement on various employment-related matters such as wages, working hours, benefits, job security, grievance procedures, and other terms of employment.

Example
Union contract is an agreement between a manufacturing company and a labor union representing its workers. The contract may outline provisions such as specific wage rates for different job classifications, working hours, overtime rules, paid time off policies, seniority rights, promotion and transfer procedures, and health and safety standards. It may also include provisions for grievance procedures, arbitration processes, and terms for the resolution of conflicts between the union and the employer. The union contract ensures that both the employer and the employees have a clear understanding of their rights and obligations in the workplace, providing stability and a structured employment relationship.