A more thorough explanation:

Definition: A labor agreement, also known as a collective-bargaining agreement, is a contract between an employer and a labor union that outlines the terms and conditions of employment, including wages, benefits, and grievance procedures.

Example: A union representing factory workers negotiates a labor agreement with the factory owner that includes a 5% wage increase, improved health insurance benefits, and a process for resolving disputes between workers and management.

Explanation: In this example, the labor agreement is a legally binding contract between the union and the factory owner that sets out the terms of employment for the workers. The agreement includes specific provisions for wages, benefits, and dispute resolution, which both parties have agreed to follow.