What is the difference between a collective bargaining agreement and a memorandum of understanding?
Act 195 requires that public employers bargain with units of rank and file employees with respect to wages, hours and other terms and conditions of employment. This requirement to bargain means that neither the employer nor the employee organization can change the bargaining unit’s wages, hours and other terms and conditions of employment without the concurrence of the other. Public employers are not, however, required to bargain over matters of inherent managerial policy. The results of bargaining must be reduced to writing, i.e. a collective bargaining agreement, and signed by the parties. Those provisions are then binding upon the parties. A collective bargaining agreement must contain a grievance procedure that ends in binding arbitration. A memorandum of understanding is a document that results from “meet and discuss” between the Commonwealth and the employee representative of a first level supervisory unit. Act 195 does not require that the employer of a first level supervisory u
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