Collective Bargaining refers to the process of negotiation between employers and groups of employees with regard to terms of employment.
Both parties eventually agree to a decision which is taken after a lot of discussions and negotiation
Features of Collective Bargaining
mnemonics: BCDEFG-VLC1. Group Action
Group/ Collective process where both parties bargain for common interest and benefits
2. Continuous Process
A continuous process that does not end with one agreement
3. Equal Strength
Equal bargaining strength with both the parties
4. Logical Process
The logical process with a series of steps in systemic order
5. Bipartite Process
It is a two-way process
Both parties collectively take action
6. Voluntary
Voluntary process in which management and worker come out of their wish for discussion/ negotiation
7. Flexible but not rigid
Needs to adopt a flexible approach throughout the bargaining process
8. Dynamic nature
9. Common Point
A special feature that they eventually reach a middle point acceptable to both parties
Type of Collective Bargaining
A. Conjunctive Bargaining
Employers and employees try to maximize their respective gains
The principle ” my gain is your loss and your gain is my loss”
B. Co-operative Bargaining
Both parties realize the importance of surviving in difficult times
(Willing to negotiate in a flexible way)
C. Productivity Bargaining
Workers’ wages and benefits are linked to productivity
If they are able to exceed the standard productivity, they will get substantial benefits
D. Composite Bargaining
Labour does not only bargain for wages but also demands equity in matters relating to work, norms, employment levels, etc.
Advantages of Collective Bargaining
mnemonics: QRSTUV- Gives worker a large Voice
- Give workers quality of life
- Offer security and stability (Doesn’t need to worry about their unlawful termination)
- Prevent employees’ strike (U)
- Creates a binding Result
- Transparent Process
Disadvantages of Collective Bargaining
1. Prone to inequality
If the representation of workers is weak, all workers may get less than they deserve
2. Requires governance duties
Representatives need to perform extra governance duties extra from the duty hour which might be paid
3. Influence the relationship between members
Sometimes al the members are not satisfied by the middle point of bargaining so it may hamper the relationship between the representation and members
4. Wage drift
Higher wage costs for employees and higher inflation within the economy
Since the wages of workers are pre-decided, there are no performance-based wages
See also: Co-ordination and Communication
See also: Problem Solving Techniques
