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Simple English definitions for legal terms
new-contract dispute
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A quick definition of new-contract dispute:
A new-contract dispute is a disagreement between an employer and employees about the terms of a new contract. This can lead to a lawsuit or changes in the existing agreement. Under the Railway Labor Act, there are two types of disputes: major and minor. Major disputes involve basic working conditions and require mandatory arbitration, while minor disputes involve the interpretation or application of an existing agreement.
A more thorough explanation:
Definition: A new-contract dispute is a type of major dispute that arises when there is a conflict or controversy over basic working conditions, often resulting in a new collective-bargaining agreement or a change in the existing agreement. This type of dispute is subject to mandatory arbitration under the Railway Labor Act.
Example: A union representing railway workers may enter into negotiations with the railway company to establish a new collective-bargaining agreement. If the negotiations break down and the parties cannot agree on basic working conditions, such as wages, hours, or benefits, a new-contract dispute may arise. This type of dispute may require the intervention of a neutral third party to help the parties reach a resolution.
Explanation: The example illustrates how a new-contract dispute can arise when there is a disagreement over basic working conditions. In this case, the dispute may result in a new collective-bargaining agreement or a change in the existing agreement. The Railway Labor Act requires that major disputes, such as new-contract disputes, be subject to mandatory arbitration to help resolve the conflict and prevent work stoppages or strikes.