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The video discusses the significance of labor agreements in successful negotiations, which can occur with or without a strike. Unions typically require member ratification for these agreements, although it's not a legal mandate. Labor agreements serve as essential documents that outline the rules for wages, hours, and employment conditions for unionized workers, often exceeding minimum legal standards. They provide enforceable contractual protections for employees, which employers must follow when making HR decisions for union-represented employees. It is crucial for managers to be well-acquainted with the labor agreements applicable to their workforce.