What Happens When A Contract Expires?

Just because the collective bargaining agreement (CBA) between an orchestra and its musicians expires doesn’t mean the organization necessarily comes to a screeching halt. Although it certainly adds an additional layer of pressure to negotiations, in most cases, the employer continues paying wages and benefits under the terms of the expired agreement until a new agreement is ratified or imposed.

And that’s exactly how the National Labor Relations Board (NLRB) describes the process:

The parties’ obligations do not end when the contract expires. They must bargain in good faith for a successor contract, or for the termination of the agreement, while terms of the expired contract continue.

At the same time, short of both sides reaching an agreement shortly after the CBA expires, here are the most likely options you can expect. Keep in mind, these aren’t the only options available but they are the most likely possibilities employers and employees adopt.

Partial Agreement

If both parties are able to reach agreement on the majority of critical items, they may decide to address other issues such as health care benefits and pensions via ongoing negotiations. In these instances, conditions for continued bargaining are spelled out in a side letter to the newly signed collective bargaining agreement and the subsequent resolutions, once ratified by both parties, will be incorporated into the master agreement.
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Play and Talk

By default, the most common scenario, both sides agree to continue with scheduled events while negotiations ensue. Per NLRB guidelines, the employer is obligated to continue paying wages and benefits per the terms of the expired agreement. At the same time, these arrangements can be structured via written agreements stipulating the play and talk conditions such as whether or not the terms of the previous agreement continue unaltered until a new agreement is reached and/or imposing a new bargaining deadline.

In most cases, both sides agree to play and talk without any written agreement. Regardless of which version is utilized, this option is used most frequently as it offers a pressure release for everyone involved although it does not guarantee any particular outcome.

Play and Talk
 

Work Stoppage

This option comes in two varieties; when musicians institute a work stoppage it is called a strike and when it is initiated by management it is called a lockout. It isn’t unusual for both sides to claim the other has initiated the work stoppage but the ultimate definition can be crucial when determining how the conflict is resolved. If the source of the work stoppage is indeed questioned, the matter is typically resolved by state and/or Federal authorities.

Regardless, under this option all scheduled events and activity will cease although both sides have been known to conduct ancillary concert action. For example, musicians can put on their own concerts and the association can turn into something of a presenter by bringing in performing arts acts, although these rarely include a full orchestra. It is most unusual to see an employer attempt to hire replacement musicians to carry on scheduled concert events.

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Imposing A Contract

In this option, management will impose the terms of their last, best, and final offer (or a variation thereof). The claim here from management is that they are not initiating a lockout and musicians must report for contracted service duties, but under the terms of the imposed agreement.

This is arguably the most passive-aggressive option as it requires the musicians to either accept the offer or initiate a work stoppage by going on strike. However, other options include legal action that requires a judge to step in render a decision on whether or not an employer can enforce the terms of a contract.

Ultimately, imposing a contract is a high-risk option that carries a number of variables that are beyond control of either side. Consequently, its volatile nature makes this a dangerous option as outcomes are not dissimilar from the “solution of mass destruction” nature inherent with work stoppages.

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2 Responses to What Happens When A Contract Expires?

  1. Garrett Thu, Sep 22, 2016 at 11:12 am #

    You have forgotten the Minnesota Orchestral Association’s dubious “Pay and Play” option from a few years ago (the deliberate obfuscation of “Play and Talk”).

    * eye roll *

  2. NYMike Thu, Sep 22, 2016 at 11:15 am #

    Good, concise info!

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