What Is a Collective Bargaining Agreement? Structure & Purpose

By Catherine Brock – Updated Jul 1, 2025 at 2:31 AM EST

Key Points

CBAs define workplace rules and are legal agreements between employers and unions.
Negotiation of CBAs involves preparation, negotiation, and ratification by union members.
Disneyland's CBA with Workers United Local 50 covers terms like wages and work schedules.

A collective bargaining agreement (CBA) is a contract between an employer and its employees that governs workplace terms, like wages, working hours, and hiring practices. The terms outlined in the CBA are agreed upon by both parties through negotiation, typically with a labor union representing the employees.

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A businessperson at the head of a table leading a meeting. — Image source: Getty Images.

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Workers Union

A workers union is a group of employees who team up to promote their common interests, including better wages, benefits, and working conditions.

The 2023 document mandates union membership as a condition of employment and outlines the employer's responsibility to withhold and remit union dues. In the employer's favor, the contract prohibits strikes or work stoppages.

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Other notable topics in the agreement include:

Scheduling of work, including when employee work schedules are published, time off for each employee, and calculation of overtime pay
The calculation and accrual of vacation time
Paid holidays and eligibility for holiday pay
Pension benefits, including the calculation of benefits and eligibility
How seniority is defined and how it influences shift scheduling and other management decisions
Drug and alcohol policy, including when employees can be tested for drug use
Wage rates by job role

The contract is executed by the director of labor relations for Walt Disney Parks and Resorts and the president of Workers United Local 50.

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About the Author

Catherine grew up in Southern California wearing a lot of black and trying to perfect the art of sarcasm. Prior to joining The Fool as a contract writer, Catherine was climbing the corporate ladder in marketing roles and dabbling in too many side hustles. When she's not writing, she can be found riding a horse in the country or shopping online for clothes.

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Catherine Brock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool has a disclosure policy.