What is the formal written agreement resulting from collective bargaining negotiations called?

• A. Collective bargaining agreement
• B. Employment contract
• C. Memorandum of understanding
• D. Operating agreement

Answer: (A)

The formal written agreement that comes out of collective bargaining negotiations is a collective bargaining agreement. This document is the legally binding contract between a labor union (representing a group of employees) and the employer, and it codifies the terms and conditions of employment for all members of the bargaining unit. It typically covers wages, hours, overtime, benefits, work rules, safety, grievance procedures, and dispute resolution, and it remains in effect for a set period until renewed or renegotiated. This contrasts with an individual employment contract, which applies to a single worker; a memorandum of understanding, which is usually a less formal or non-binding outline of agreed points or intentions; and an operating agreement, which governs the structure and governance of a business entity rather than employment terms.