What Goes in a Union Contract?

It is not possible to show you a typical union contract, because every workplace is slightly different, and so are the working conditions. However, some basic things are the same, and we list these things here.

All contracts are the products of negotiations between the workers and the boss. They are usually written in boring, legal terms, but these are very important for securing your rights in the workplace, should you chose to negotiate a contract at all. According to labor law, contracts represent the minimum compensation and benefits for employees. An employer may offer rights and benefits that exceed the minimum standards set in an existing contract.

It should also be pointed out that all workers in the workplace should know what's in their contract, because the bosses often will try to violate contracts (that is why we elect shop stewards and negotiate grievance procedures). The employer can only succeed in undermining the contract if the workers don't stand up for their rights. Remember, a union is only as strong as the workers in that union make it!

A List of Typical Contract Provisions (for US Workers)

• Union Shop - A provision that states that all employees must belong to the union as a condition of employment. Exceptions to this are granted for religious reasons and in "right to work" states. (States, mostly in the South, where union shops are illegal.)
• PAC contributions - this is NOT compulsory, but employees who wish can give money to a union political action committee. By the way, this is where unions get their money for political activities, as union dues may not be used for such activities.
• No discrimination policy - employers cannot discriminate against employees because of union membership, age, creed, color, sexual preference, religion, etc. These things are "guaranteed" by Fair Employment laws, but without a union grievance procedure, workers usually have to file costly lawsuits in order to win discrimination cases against the boss. A union contract makes this much easier to enforce.
• Seniority - the seniority system is spelled out. Basically, seniority is used to determine in what order employees are laid off in the event of a lay-off, in what order employees are called upon to work holidays, etc.
• Grievance procedure - one of the cornerstones of unionism. This system provides a way for most conflicts between management and employees to be peacefully resolved. If an employee feels he or she has been wronged and cannot resolve it with management, a union representative will meet with a management representative and try to resolve the issue. If that fails, another attempt is made with the management representative's superior. If that fails, an outside arbitrator is called in, whose word is binding on both parties.
• Hours & Overtime defined - usually 40 hours at 8 hours a day. If more than 8 hours in one day or 40 hours in one week are worked, overtime must be paid.
• Work breaks defined - usually two 15 minute breaks per 8 hours worked.
• Union Stewards - union stewards are simply employees who are elected to represent the union on the job site. They make sure the contract is not violated, help employees that have problems with management, and handle most of the grievance procedure etc.
• No strike/no lockout - during the duration of the contract, the union may not strike and management may not lock employees out of the workplace. The IWW discourages the inclusion of such clauses, because giving up the right to strike makes the union much less potent. The right to strike is guaranteed under the National Labor Relations Act unless unions choose to negotiate that right away.
• Appeal from discharge - in the event that an employee is fired, he or she can appeal to the union for help within 30 days.
• Wages - the biggie! Union contracts will usually define what the base rate of pay is. If a union simply cannot secure a direct raise, there are other options available in getting better compensation for employees. Such as...
• Raises - Contracts will lay out the raise system for the life of the contract. Most union contracts base that rate of pay on either a fixed percentage or the Consumer Price Index (adjusted annually for inflation). A good rule of thumb is the fixed percentage should be at least as much as the annually increase in the cost of living.
• Shift differential - unpopular/inconvenient shifts can be awarded a slightly higher wage - either a flat rate (so much per hour) or a percentage of the employee's normal wage per hour. (Often 10%)
• Sunday premium pay - compensates employees at a greater rate for working Sunday. Usually a flat rate. The best union contracts also require premium pay for working on Saturdays and legal holidays as well.
• Birthday as a holiday - Happy Birthday! Take the day off!
• Health care - Most unions will work to insure that the employee has no monthly contribution.
• Pension fund - the contract states that the employer will contribute so much per month to a pension fund. This amount usually increased as the employee gains more seniority. Some of multi-employer pension funds, and some are simple 401k plans.
• Quality of Work Life Committee - representatives for management and the employees meet in a committee monthly to work together to determine the best path for the store or plant to take.
• A Union solidarity clause - your union has the right to honor another union's picket line.
• Hiring Halls - the best union contracts require the employer to help the union finance a hiring hall and all new employees must be hired from a rotating list of qualified union applicants.
• Length of contract - usually between 1 - 5 years.

There are many other things that can and do go into contracts: they are tailored for each industry, shop, factory, etc. Some contracts will have special provisions for unusual cases. Some contracts may be "industry-wide" representing all workers in the same line of work for an entire region. Even collectively owned workplaces might have a union contract that protect the democratic rights of each worker-owner. Some of these points are taken from "How to Organize a Union" by Shannon Matthews, as featured on the unofficial ILWU site. We recommend you visit that site for more information.