Contract Language Requires Continued Wage Increases Even After Expiration, Rules Divided NLRB

The process of collective bargaining is filled with nuance and sublety. Unlike other business negotiations, there is often a dance that takes place as the parties attempt to reach an agreement. Given the Act's mandate that the parties "meet and confer" at "reasonable times" to try to reach an agreement, it is legally impossible to go in with a "bottom line;" rather, the parties must make a good faith effort to reach a compromise.

Collective bargaining is different from other business arrangements in another crucial respect. Many business contracts expire and have no continuing obligation. Once a collective bargaining agreement expires, however, almost all provisions remain in effect while the parties bargain over a successor agreement. That is, the terms and conditions of employment of the bargaining unit employees are kept in place by force of law as opposed to the contract. A few items automatically expire with the contract. For example, the "union security"