As we continue our discussion on Procurement Management, it is important to introduce Union and Union Agreement.
A group of employees within an organization can be represented by an independent trade union. A Union Agreement also known as Collective Bargaining Agreement is a written and legally enforceable contract specified for a time period, usually an year, between the organization and the union. The contract specifies conditions of employment like wages, working hours, terms and conditions etc as well as procedures for conflict resolution.
If you, as a buyer, sign a contract with a seller who in turn has an existing Collective Bargaining Agreement with a union, the union becomes a stakeholder in your project. Thus, the union can have an impact on the project too. So it is important that while planning the project, the union rules and regulations are also added as project constraints.
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