Management Rights Clause
A CBA provision reserving to the employer all authority not specifically restricted by the contract.
Full definition
A Management Rights clause is a near-universal provision in collective bargaining agreements that reserves to management all powers not specifically limited by the contract. Typical clauses include the right to hire, fire (subject to just cause), assign, direct the workforce, determine the size and composition of the workforce, establish work rules, and determine the products and services produced. The breadth of the clause determines how much discretion management has — a "reserved rights" clause grants management everything not given away; a narrower clause may require bargaining over more changes. Past practice can sometimes limit the exercise of management rights even where the clause is broad.
Related terms
Collective Bargaining Agreement (CBA)
A legally binding contract negotiated between a union and an employer that governs wages, hours, and conditions of employment.
Past Practice
A consistent, long-standing workplace custom that becomes binding even if not written in the CBA.
Zipper Clause
A CBA provision stating that the contract is the complete agreement and that neither party can demand mid-term bargaining.
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