Workers’ Labour Bargaining Disadvantage: a case on negotiating with employers over wages and conditions
Collective bargaining, according to (1999) is the process and practice where the management and the union representatives goes into negotiations particularly on terms and conditions of employment which will govern their conduct of their relationships during the duration of the agreement. Particularly, it aims to come up with considerably fair and acceptable wage and employment conditions for the whole workforce. The important role of collective bargaining focuses on its given function in maintaining agreeable working relationships among the corporate management and the members of their labour force particularly in terms of managing contradictory interests in employment relations (1979). The emerging trends that affect contemporary human resource management on labour bargaining need constant policy investigation especially when it comes to the welfare of both the management and employee’s union. On this case, it aims to look on the disadvantageous position of workers’ labour bargaining when negotiating on wage and working conditions.
The existing belief that the general tendency of labour bargaining will be toward an improvement in the employment structure is supported by recent trends in the proficiency or functional distribution of the labour force ( 1998). On this aspect, more and more collective bargaining systems and structures in global setting affect the development of the existing industrial relations philosophies. The proposition that workers are at a bargaining disadvantage when negotiating with employers over wages and conditions is always a subject of public debate and policy argumentation. Granted that the management is at higher position when it comes to employment conditions, it is then understood that members of the workforce is less authoritative on this case. They are more or less in complement or succumb with the prescribed standards of employment. However, such prescribes standards of employment are not arbitrary as they are based on given standards in the global practice of industrial relations.
On this case, the arguments in support and against the given proposition fall on two participating bodies – the management and the employees themselves. It could be said that management take further responsibility on the agreement on wages and working conditions as they govern employees and most likely, employees are to be submissive to such granted that their individual and employment rights are not violated. In here, there are various considerations like the organization’s wage determination process particularly the participation of workers to unions and the observable individual characteristics and working conditions employed in different sectors are taken at hand.
According to the standard Walrasian (competitive) model of the labour market (2003), it states that the equilibrium wage is determined in the course of marginal productivity wherein two agents with indistinguishable productive characteristics essentially be given the same wages. The process of wage determination is complex as various factors are needed to consider. The workers in the process of wage determination are not directly involved. This fact alone shows their obviously disadvantageous position. On instances like this, the role of unions emerges. Union representatives air employee concerns through the management by using formalized communication techniques. Legalities are always at hand like for instance, the way in which unions are organized and the structure of collective bargaining can significantly influence overall wage distribution. Wage distribution is dependent on employee position. This is a given fact that workers should recognized. However, the supposed compensating differentiation may take place between related individuals who are placed in different working conditions (2003). The disadvantage position of workers in relation to this instance is seen on the inability of workers to control the range or coverage of their tasks. Even though wages are considerably acceptable in both management and union representatives as an effect of collective bargaining, workers are not fully compensated as they might be under or over represented. The bulk of work must serve as basic consideration in the determination of wage not only in accordance to the needed professional or skill-based requirements. The disadvantageous position, again, on the part of the workers is their inability to directly and actively participate in the collective bargaining efforts as they are already represented by unions which can be under or over represented. Certainly, the inconvenience undergone by one individual following the performance of a task in an unfavourable situation may lead to wage return or wage reconsideration.
On wages, workers need to negotiate through unions. Typically, trade unions have an effect on the wage structure of workers by raising pay levels that were covered by collective bargaining agreements (1994). In various sectors, wages vary accordingly as identified by management’s policies and strategies. In general, depending on the arrangement of workers affected by the union mark-up with respect to the overall wage distribution, the effects will go in the direction of reducing inequality in cases where workers have below-average pay levels. On the contrary, inequality is likely to increase if workers have above-average pay levels. Thus, the disadvantages position of workers in the issue of their wage seems unpredictable. The differences both in individual characteristics and working conditions affect the overall result of collective bargaining efforts particularly on wage distribution and general employee welfare. However, the case of inequality in abstracting from the level of wages of controlled workers wherein union policies have the effect of introducing wage differences among otherwise comparable workers, the final impact on wage distribution will be an increase in distribution. This will work towards the welfare of the majority of workers. It must be acknowledge that the level of bargaining is also likely to be of some importance like for instance, while more centralized negotiations tend to be more egalitarian, decentralized bargaining may increase interplant wage differentials ( 1994).
On aspect of working conditions particularly in managing conflict, labour bargaining serves as pacifying agent. It is somewhat disadvantageous for workers that union representatives may or may not actually refer their grievances to the management. Conflict management requires bargaining strategies that will uphold the principles of industrial relations as it pertains to fair employment welfare but when union leaders are pro management, the tendency of unfair employment is at large. Conflict occur when cases like these occur and that conflict management mechanisms are to be implemented. There are more than a few ways for two involved parties to settle their individual sides. These methods are most frequently used for labour relations especially when unions are attempting to discuss with the other parties concerning their wants and needs to be applied in their work, like for the case of wages and working conditions. These bargaining strategies are extremely helpful especially in the organizational setting. Such discussions can lead to the overall improvement of the industrial relations regulations and policies (1998). With the given benefits of collective bargaining on cases of conflict management, these negotiations may also be disadvantageous particularly when used out of place. Specifically, it has the potential to become a major battle between the parties, involving several groups of people being directly and indirectly affected by their conflicts (1998).
In international setting, the presence of institutional factors and policy instruments that affect the labour market performance is fully observed by the OECD Employment Outlook ( 1997). A number of collective bargaining systems are self-governing to the existing policies and regulations of the government or any governing body or maybe collective bargaining systems interacts in various ways – easy or complex – and includes bargaining variables (1997). From the viewpoint, it could be said that workers’ disadvantageous position in wage distribution must be treated in the most acceptable and objective ways possible, that is, without sacrificing any aspect of industrial or employment relations. Working conditions that involve the procedures for hiring, layoff, transfer, and reassignment as well as wage and remuneration packages must customary in terms of increased effects as derived from identified changes on the size and composition of the work.
Because human labour force is considered to be fuels of the national economy, it is very primary to take care of their rights and welfare. The result of this debate on labour’s bargaining disadvantage particularly on issues of wages and working conditions is the urgent need to review existing policies on legal, managerial, economic, and other aspects in relation to the validity of actions for both participating parties. There is also a need for human resource management theory and practice to look on unexplored possibilities on the following issues presented. The role of government is also customary. It is then recommended that national employment relations are decentralized. The effects of any collective bargaining procedures to the performance of workers are manifested on their ability to bring economic productivity to the organization they belong. Thus, institutional capacity among players of any bargaining agreement must see to it that bargaining considers macro-economic implications at hand. The classification of the labour’s bargaining structure and practice is also crucial in corporate and managerial decision-making and taking. The disadvantageous position of workers in the discussed cased requires ardent efforts from industrial and employment relations practitioners and experts to be keen on the growing needs of both employers and employees.
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