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Running Header: LABOR CONTRACTS1Labor ContractsInstitutional AffiliationDateLABOR CONTRACTS2Labor contracts which are also identified as collective bargaining agreement areagreements between the companys management and the trade unions that are representingthe employees. The agreement contains detail in regards to the responsibilities of both theemployer and employees and the contract will be very helpful in regulating the terms andconditions of the working environment. Labor contracts differ depending on the industry thejob in question falls in and will include different clauses that will apply to specific individualswho are parties to the agreement. In addition, breach of any clause detailed in a labor contractwill make the party that had breached agreement liable for any damages faced by the injuredparty. Hence, labor contracts help stabilize the employer-employee relationship (Cox, 1958).The automobile industry has grown throughout the years and the labor relations thatregulated all the under goings in the industry and the collective bargaining system hasevolved massively. In the 1950s United Auto Workers Union was formed to help with thecollective bargaining relationship to cater to the biggest automobile industries as well as thesmall industries. The union back in the 1950s employed the use of negotiation to settle thedispute arising within the automobile industry serving the interests of both the companies andthe unions (Sabel, 1985).On ...


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