Collective Bargaining

Disputes between employers and employees in the workplace may be resolved via dialogue and negotiation between the two sides. After much debate and discussion, all sides ultimately agree to follow the conclusion. This is known as collective bargaining. As early as the late 18th century, British workers were engaged in collective bargaining. Samuel Gompers’ leadership of the American Federation of Labour led to its widespread adoption in both Europe and the United States. Pay, perks, conditions of employment, and annuities are just a few of the topics often addressed in a collective bargaining agreement.

What is Collective Bargaining?

The representatives of a labour organisation and the representatives of a business organisation meet and seek to negotiate a contract or agreement that describes the nature of the employee-employer union relationship. This refers to collective bargaining. Unionisation of workers, the administration and interpretation of collective agreements governing pay, hours of work, other employment conditions, and dispute resolution processes are all part of this process.

What is the Process of Collective Bargaining?

The collective bargaining process involves four steps which are described below:

Make a List of Must-Haves

The union produces a list of the most important issues raised by its members into an official document, which is subsequently sent to the appropriate political parties. “Key demands” is another term for this group. As a starting point for negotiations, it may contain issues that are considered “red lines.” In most cases, this would be in the form of payment or other important perks. Negotiations will fail if these conditions are not satisfied.

Start the negotiation

Deals are addressed in various ways, such as in-person meetings, by email or by a phone call in the process of collective bargaining. Certain provisions of the agreement may be omitted at the option of either party, while the employer may seek their inclusion at the request of the employee. For both sides, gathering information on the best course of action may be part of the process. A ten per cent increase in an employee’s salary, for example, will cost the business money. Because of this, the negotiators would have to evaluate whether this is financially feasible. Negotiations will continue in a circle until one side or the other accepts a compromise or until all sides withdraw.

Arrive at an agreement

After a general agreement is established, the finer details of the agreement are worked out. Legal language and a binding contract ensure that all parties are held accountable. The last step is to sign any relevant paperwork. In brief, this step of the collective bargaining process is when the agreement is established, and the final details are established.

Administration of the Contract

Unions will try to hold the employer to account and guarantee the agreement’s implementation at this point. If a contract is slated to expire before another round of discussions can be had, this might mean that a new round of negotiations must be held. Consequently, the collective bargaining system may be seen as an ongoing process.

What are the types of Collective Bargaining?

There are five types of collective bargaining, which are discussed below. 

Distributive Bargaining

Negotiations in which one side receives an advantage at the cost of the other are known as distributive bargaining. Redistributing money via greater salaries, bonuses, or financial perks is sometimes called “income redistribution.” Everything has to do with money transfer.

Integrative Bargaining

‘Win-win’ negotiation is the goal of integrative bargaining, in which both parties want to profit. Both sides can come up with a list of requests and then come to an agreement that benefits both parties. As a result of this type of collective bargaining, i.e., integrative bargaining, both parties consider each other’s requirements, desires, anxieties and worries while deciding on a deal.

Productive Bargaining

One of the five types of collective bargaining is Productive bargaining. Negotiations on wages and productivity are central to productivity bargaining. On the other hand, unions may argue that greater wages would lead to increased production. In any case, no one in the company knows this. As a result, it’s possible that new strategies for process improvement, such as incentives tied to specific goals, would be proposed.

Composite Bargaining

If you’re looking for a discussion that doesn’t revolve around salary, you’re looking for composite negotiating. Employer well-being and job security are two of their most common concerns. The goal is to build a long-term connection between the company and employees. Employees’ long-term futures are highlighted by outlining challenges they may face.

Concessionary Bargaining

To achieve concessionary bargaining, unions give up benefits that they previously received from their employer. The primary goal of concessionary negotiation is to secure the company’s long-term viability and its workforce. Consequently, the enterprises’ long-term viability and the unions’ members must pay back former rewards.

Conclusion

Perhaps the most significant benefit of collective bargaining is that both parties get to know precisely what they can anticipate from each other and how they can use their rights. This may help to reduce the likelihood of future confrontations. It also has the potential to improve operational efficiency. Employees who join a union have the assurance that they will not be fired or face reprisal from their employer. Using this strategy effectively may lead to a more ethical manner of conducting business on a large scale. Fairness and equality are just a few of the ideals it advocates. These ideas have the potential to permeate other aspects of a person’s life and encourage them to behave better towards others in general.