Research Articles Base: Impact Of Collective Bargaining

Impact of Collective Bargaining

Impact of Collective Bargaining                 It is important for an enterprise to recognize that the relationship between   the employer and the employees is the organization’s foundation. And   negotiations and agreements are part of development of harmonious relations   between the two parties. Negotiations vary depending on the purpose of either   party. And one of the most used types of negotiation is the collective bargaining.               Collective bargaining is the process of voluntary negotiation between the   employers and the employees in which is aimed at reaching agreements about   regulating working conditions. The employees are typically represented by a   trade union while a single employer or a lawyer represents the stakeholders.   Collective agreements usually cover issues such as wages, labor contract,   benefits, health and safety, and rules of the workplace. Once the both sides have   reached an agreement, it is signed and legally acceptable for certain period of   time.                Collective bargaining roots in the late 19th century when workers began to   fight for more rights in terms of employment. Many skilled workers started to use   their skills as bargaining tools in forcing their employers to meet their workplace   conditions. While other workers solely rely on their numbers in creating general   strikes fighting poor working conditions. Thus, marches and agitation moved   several labor pioneers in starting to establish a collective bargaining system so   that labor negotiations would run smoothly and the production would not be   halted.               However, according to a UK study published in May 2002, the presence of   trade unions and collective bargaining relationships has little effect on workplace   performance. The report entitled “Collective Bargaining and Workplace   Performance” implicates multivariate statistical methods in modeling the   relationship between the collective bargaining and key outcomes in controlling   the effects in larger number of possible influences. Also, the study was   stimulated by the changes in collective bargaining, notably simplifying the   arrangements moving towards ‘single-table bargaining’ wherein several trade   unions negotiate with the management as one group. Moreover, the study maps   the collective bargaining agreements in linking to two measures of performance –   the perceptions of financial performance and the quality of employee relations   climate.   Financial performance is rated by managers in relation to the industry   average. Union recognition and the nature of bargaining arrangements are   irrelevant in assessing the performance of the employees. While the employee   relations climate is rated by the overall relationships at the workplace. In this   case, it gives an insight to the managerial practices and interactions among co-   workers.               Moreover, collective bargaining does not guarantee protection on the   employees. Not all issues raised during the bargaining process would end up in   labor agreements. There are demands of the employees that the management   cannot provide. When a gap exists in the bargaining agreements between the   trade union and the management, the party with the higher frequency of   agreement terms adapt to the closer possible solutions to the issues raised. An     example is when the employees demand job security, the management responds   by giving work flexibility rules.               Cross analysis of collective bargaining on countries overseas are already   been conducted through the years. However, due to differences on wages   legislation and socio-cultural factors, there are no conclusive results in   generalizing the effect of collective bargaining in the economy of every country.               Collective bargaining develops the mutual trust and relations between the   employers and the employees. It does not only provide protection and guarantee   on either party but it elevates the level of respect on treating each other. The   employees should demand what they deserve while doing their best in terms of   accomplishing their work. And in the part of management, they should treat the   employees humanely because they profit from the productivity of the employees.   It is a give and take relationship, and they definitely need each other.                                           References:   Impact of collective bargaining on workplace performance assessed, September 2002, http://www.eurofound.europa.eu Jensen, Uwe, and Sussane Rassler, The Effects of Collective Bargaining in Firm Performance, November 2007 Cramton, Peter et. al, The Effect of Collective Bargaining Legislation on Strikes and Wages, May 1999   Credit:ivythesis.typepad.com

Impact of Collective Bargaining

Impact of Collective Bargaining It is important for an enterprise to recognize that the relationship between ...