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A collective bargaining agreement contains the working conditions that have been mutually agreed to by the union and management. Contract administration is the term used to describe the process whereby the union and management interpret, apply and enforce the terms of their agreement. As indicated, this is a bilateral process. It can be challenging, since the agreement may be changed, will not cover every situation, and is subject to varying interpretations. When there are differing interpretations of the contract, either party may file an institutional grievance under the negotiated grievance procedure.
Contract administration is one of the more important responsibilities of union and management representatives. It is a team effort the quality of which will do much to determine whether there is cooperation or conflict between management and the union.
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