Collective Bargaining Agreement: Most Favored Nation Clause | Practical Law

Collective Bargaining Agreement: Most Favored Nation Clause | Practical Law

A Standard Clause that can be included in a collective bargaining agreement (CBA) to allow an employer to obtain from a union the best economic terms for labor among all of the employers that have a collective bargaining relationship with the union within a specified industry or region. If the union subsequently enters into a CBA with a different employer that provides for lower-cost wages or benefits, an employer that has negotiated a most favored nation clause (MFN) can demand modification of its CBA to adopt those more favorable terms. This Standard Clause is based on the National Labor Relations Act (NLRA), but may be used by private sector employers subject to the Railway Labor Act (RLA) or public sector employers. This Standard Clause has integrated drafting notes with important explanations and negotiating tips.

Collective Bargaining Agreement: Most Favored Nation Clause

Practical Law Standard Clauses 5-527-1786 (Approx. 10 pages)

Collective Bargaining Agreement: Most Favored Nation Clause

by Practical Law Labor & Employment
MaintainedUSA (National/Federal)
A Standard Clause that can be included in a collective bargaining agreement (CBA) to allow an employer to obtain from a union the best economic terms for labor among all of the employers that have a collective bargaining relationship with the union within a specified industry or region. If the union subsequently enters into a CBA with a different employer that provides for lower-cost wages or benefits, an employer that has negotiated a most favored nation clause (MFN) can demand modification of its CBA to adopt those more favorable terms. This Standard Clause is based on the National Labor Relations Act (NLRA), but may be used by private sector employers subject to the Railway Labor Act (RLA) or public sector employers. This Standard Clause has integrated drafting notes with important explanations and negotiating tips.