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Some private contractors choose to have a unionized workforce. In such cases, the union, like Smart Local 18, would represent the employees in collective bargaining, negotiations, and grievance procedures. The terms and conditions of employment, including wages, benefits, working hours, and workplace rules, are often collectively bargained between the union and the contractor.

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Unions often negotiate benefits packages for their members, which can include health insurance, retirement plans, and other perks. Private contractors that employ unionized workers typically contribute to these benefit programs.