Collective Bargaining Analysis

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Analysis of Stakeholders involved in a collective bargaining process

Collective bargaining, as the term implies, is a process collective in nature not individualistic. In the process one group, representing the employers, and the other, representing the employees, negotiate together the terms of employment. The prospect of collective bargaining is dependent on its transformation into a cooperative process involving multiple parties. Collective bargaining is workable only if the parties bargain in good faith and hence the analysis of role and motivation of various stakeholders in the process is necessary. There are various stakeholders involved in the collective bargaining process; some of the concerned ones are described below:

The Government …show more content…

For majority sections of the workforce in wage and salaried employment, collective bargaining is still supposed to increase the power of the workers and trade unions to negotiate better working conditions and wages of employment. The unions have high bargaining power if both the input and output of labour is not substitutable and if the proportionate cost of labour is low. The purpose of collective bargaining by trade unions is to secure better and fair wages and benefits for their members and to ensure parity across different categories of employees.

With high level of centralization and coordination in bargaining the tendency to show some moderation in wages increases so that the weak and strong units pay nearly similar wages to workers at similar skill levels and occupations. There should be a recognition criteria for the union for collective bargaining purposes even where there is a single union structure. The union should be representative of a minimum percentage of employees for the negotiation of employment agreement with the employer.

Consumers & …show more content…

Generally the negotiating committee is created by a proportional representation of many unions in an establishment. In such case it is easier for the management to negotiate with one bargaining party if multiple unions can form a single party at the company level. In the private sector, employers generally opt for plant-level bargaining because it can reduce the bargaining power of trade unions and uniformity of wages can be ignored. The advantage for trade unions in such bargaining is that the labor issues can be resolved easily and

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