Advantages and Disadvantages of Collective Bargaining PDF

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10 Advantages and Disadvantages of Collective Bargaining

Collective bargaining is referred to as a process or negotiations between an employer or organization and a group of employees who are members of a trade union. The union will negotiate with an employer or a group of businesses on behalf of an employee or employees. It usually encompasses negotiations on number of hours worked, health and safety, salaries and grievances, among others. Although it has been introduced as early as 1891 and have been in existence for more than a century, not all are for this process. There are advocates for as well as critics of collective bargaining and both have significant views on why it is good and bad for industries and the parties involved: the employers and employees. To have a better understanding, let us discuss the pros and cons of this contentious topic. List of Advantages of Collective Bargaining

1. It is pro-employees. Advocates for collective bargaining posit that with collective bargaining, it will be easier for employees to fight for their rights as hard-working people. By being members of trade unions, they will have a voice through the representatives of the unions whose aim is to work for the betterment of its employee members such as higher wages, shorter working hours, safer workplaces and better health care. 2. It keeps abusive employees powerless. In collective bargaining, employees who normally will not have the means and confidence to fight for their rights if they are not part of a trade union will have individuals who will challenge employers who take advantage of their workers. Supporters of collective bargaining say that

employees have better chances to get compensated accordingly or leave their jobs if they want to without having to worry they will be sued or not get their wages. 3. It prevents employees from going on strikes. When there are big issues between employees and employers that are not settled, a popular option for employees are to go on strikes. These actions hamper operations and consequently cripple businesses. In the end, consumers suffer. With collective bargaining, there is no need for workers to stop working because they have representatives with them who will work for their benefits. Moreover, collective bargaining protects employers as well. This is because collective bargaining will result to an agreement. And normally, this will also be agreed upon if the negotiations are beneficial for both parties. With collective bargaining, employers are also protected in a way since business operations will not be totally affected. 4. It gives protection to all employees. People who are in favor of collective bargaining say that in the contracts signed by the employers and trade union representatives, all employees in the company will benefit from whatever conditions are stipulated in the agreement, regardless if they are members of the trade union or not. Additionally, this gives employees the right to question the policies of the company they belong to. 5. It provides security and stability. On the part of employees, this will give them security of tenure since they will not have to worry about getting terminated unlawfully and in case they will be, they have a support system as well as representatives to fight for their rights as employees. Conversely, business owners will be able to project the expenses to finance operations and compensation packages and benefits. This way their businesses will be more stabilized.

List of Disadvantages of Collective Bargaining

1. It is prone to inequality. Critics of collective agreement say that this can lead to either the employers or employees getting less of what they deserve. If representation is weak on the side of employers, chances are, the business will lose a substantial amount of money from over-compensation or excessive benefits. On the other hand, if representation for employees is weak, they might not get employment benefits they should be enjoying. 2. It can be biased to employers. Some groups not in favor of collective bargaining argue that this process gives too much power to employees and leave the employers with tied hands when it comes to running their businesses. Since trade unions can demand from employers and ask for collective bargaining negotiations, critics are worried that this practice may become a habit even if in truth, there is nothing irregular with how these employers run their businesses. 3. It takes a long period of time. Another disadvantage claimed by anti-collective bargaining is the time it takes for the egotiations to finish and materialize. They talk about bureaucracy and what it does to the people involved in the process. Negotiations can take months and even years to finish, excluding the time it will take to execute the stipulations in the agreement contracts. 4. It can be unfair to senior employees and member employees. If the issue is about salaries and benefits, say equality in wages, employees who have been working for long years for an organization are taken advantage of since they will be getting the same benefits with that of their junior and newer colleagues. For critics, this is not appropriate. Also, they contend that since that all the benefits included in the collective bargaining agreement

will be handed down even to non-member of the trade union, for example, this is not fair to members who pay for their dues. 5. It can widen the gap between employers and employees. Although collective bargaining is aimed to come up with solutions beneficial to both the management and employees, there are cases where nothing is agreed upon. When talks become futile, the situation might aggravate instead of mitigate. For the opposing group, this can, at times, create a barrier between employers and employees instead of a healthier relationship. Collective bargaining has both advantages and disadvantages which can work for or against the parties involved. Although mutual benefits can be achieved legally with this, abuse and inequality can also take place. So long as the benefits outweigh the setbacks and employees get what they deserve without negative effects on the company’s resources and growth, collective bargaining can be a good thing.

10 Most Valid Advantages and Disadvantages of Collective Bargaining navajocodetalkersadmin on June 12, 2015 - 5:28 pm in Pros and Cons

Collective bargaining, a term coined in 1891 by economist Sidney Webb. The basics of collective bargaining is when an entire group of employees negotiate the terms of their employment in a legally binding contract with their employer. These terms can be how much they get paid, the benefits they are offered, scheduled salary raises, vacations times, and even work hours. This form of bargaining has been widely used because it is mutually beneficial for the management as well as the workers, it also promotes clear communication of standards and expectations. While it may seem like a great option for all businesses to use, there are certainly issues for both parties involved.

The Advantages of Collective Bargaining 1. Provides Security To Workers Since collective bargaining contracts are legally binding agreements, the employees can be sure of their work conditions. As long as all terms are followed, the management cannot go back or change any of the conditions. 2. Prohibits Strikes This is the security that is provided to the management. Collective bargaining agreements prevent any employees from striking or not working to try to get different benefits. Strikes can cause huge problems within a company, so this is a big draw for management to use collective bargaining. 3. Gives Employees A Voice All of the employees that the agreement will affect are allowed to have a say in the conditions. All voices are heard, which promotes a much better moral in the workplace. This also ensures that the wants and needs of the majority are met. 4. Reduces Bias and Favoritism All too often you hear stories of someone getting additional benefits simply because of their relationship with their boss or other irrelevant things. This is greatly reduced, and possibly eliminated, with the use of collective bargaining. It evens the playing field for all employees. 5. Stabilizes The Business Without the fear of layoffs, or wage cuts, people feel much more stable in their job and position at a company. The stability also comes in for the management because they can easily determine budgets because all wages and benefits are clearly laid out.

The Disadvantages of Collective Bargaining 1. Not All People Will Agree Collective bargaining cater to the needs of the many and disregard the few. The terms in the agreement could negatively affect employees who have special circumstances or simply do not agree. In this case, these employees have no say. 2. A Loss of Authority When employees know exactly how much power management has, and has a say in the things that they can and cannot do, their role as the authority figure is greatly diminished. Respect suffers immensely when collective bargaining is used. 3. Bureaucracy Takes Forever Collective bargaining involves the use of bureaucratic systems. This extends the time that it takes to make decisions and implement any new policies into the work place, causing time and money for the company. 4. Reduces Managements Hand In Business Constructive development is hugely hindered when collective bargaining is use. If a policy or term of the

agreement truly needs to be revised or removed, it is nearly impossible to do so. The contract are generally multi year, which means that this time has to be waited before the changes can be made. 5. Equalized Pay Causes Problems When you make benefits and pay the same across the board you are begging for issues. Workers who have worked at the company longer or who are much more skilled than other workers, will feel taken advantages of with equalized pay that collective bargaining results in.

Collective Bargaining in Human Resource Management Article shared by :

Collective bargaining in Human Resource Management! Learn about: 1.Introduction to Collective Bargaining 2. Nature 3. Characteristics of Collective Bargaining 4. Importance 5. Principles of 6. Process of Social Change (Prof. Butler’s Views) 7. Content and Coverage of a Collective Bargaining 8. Forms 9. Developing a Bargaining Relationship and Other Details. Content: 1. Collective Bargaining- Introduction 2. Collective Bargaining- Nature 3. Collective Bargaining- Characteristics 4. Collective Bargaining – Importance 5. Collective Bargaining- Principles 6. Process of Social Change (Prof. Butler’s Views) 7. Collective Bargaining Agreement – Content and Coverage 8. Collective Bargaining – Forms or Types 9. Developing a Bargaining Relationship 10. Collective Bargaining in India 11. Collective Bargaining – Recent Trends 12. Prerequisites of Successful Collective Bargaining 13. Collective Bargaining – Conclusion

Collective Bargaining in Human Resource Management: Types, Role, Process, Scope, Importance and Objectives

1. Collective Bargaining- Introduction: Collective bargaining is a joint consultation process. It is a process of give and take that happens between the employer and the employees, representing their concerns through a recognized union. Collective bargaining permits employees to participate in setting terms and conditions of employment through a representative union. In real terms, it is actually a participative process and a consulting technique that is being pressed into service by unions and managements to reconcile their conflicting interests. ADVERTISEMENTS:

It is called collective because the employees, as a group, select representatives to meet and discuss differences with the employer. Collective bargaining is opposite of individual bargaining which takes place between management and a worker, as an individual, apart from his fellow employees. Collective bargaining plays a significant role in improving labourmanagement relations and in ensuring industrial harmony. The negotiations for collective bargaining require joint sessions of the representatives of labour and management. These help a lot in promoting a better understanding of each other’s point of view as well as the problems confronting them. Through discussions and interactions, each party learns more about the other, and misunderstandings are often removed. Although, all major differences may not always be sorted out, collective bargaining helps in resolving out many minor differences; and there are many instances in which even major disputes have been settled without any work stoppage or outside intervention. Accordingly, the role of collective bargaining in conflict resolution is very significant. It builds up safety valves, allowing the opposite group’s excess steam to escape without blowing the whole mechanism to pieces. ADVERTISEMENTS:

1. Collective bargaining implies community of interest. Its meaning and form continue changing and this fluidity makes it difficult to define or comprehend in precise terms. Ludwing Teller has defined collective bargaining “as an agreement between a single employer or an association of employers on the one hand and Labour Union on the other hand which regulates the terms and conditions of employment.” 2. The Encyclopedia Britannica defines that collective bargaining is a negotiation between an employer or group of employers and a group of working people to reach an agreement on working conditions. Collective bargaining is more usually understood to be negotiation between one or more trade unions and an employer or group of association of employers. Trade Union Organisation gives the working people strength in providing means for the expert representation of demands by skilled officials not dependent on the employers for their jobs. Further, a Union has funds and means of obtaining information outside any one undertaking and can secure for the working people at any one firm the support of their fellows in other firms. 3. Encyclopedia of Social Sciences, “collective bargaining is a process of discussion and negotiation between two parties, one or both of whom is a group of persons acting in concert. The resulting bargain is an understanding as to the terms and conditions under which a continuing service is to be performed…. More specifically, collective bargaining is a procedure by which employers and a group of employees agree upon the conditions of work.” ADVERTISEMENTS:

4. R. F. Hoxie- “Collective bargaining is a mode of fixing the terms of employment by means of bargaining between an organised body of employees and an employer or an association of employers usually acting through organised agents. The essence of collective bargaining is a bargain between interested parties and not a decree from outside parties.” 5. Richardson says- “Collective bargaining takes place when a number of work people enter into a negotiation as a bargaining unit with an

employer of group of employers with the object of reaching an agreement on the conditions of the employment of the work people.” 6. Cox defines collective bargaining as “the resolution of industrial problems between the representatives of employers and the freely designated representatives of employees acting collectively with a minimum of government dictation.” 7. According to Selig Perlman- “Collective bargaining is not just a means of raising wages and improving conditions of employment. Nor is it merely democratic government in industry. It is, above all, a technique whereby an inferior social class or group exerts a neverslackening pressure for a bigger share in social sovereignty as well as for more welfare and greater security and liberty for its members. It manifests itself actually in politics, legislation, court litigation, government administration, religion, education and propaganda”. ADVERTISEMENTS:

8. In the words of Ludwing Teller, “The collective bargaining agreement bears in its many provisions the imprints of decades of activity contending for labour equality recognition of the notions underlying collective negotiation. Indeed, in the collective bargaining agreement is to be found a culminating purpose of labour activity.” Concept and Origin of Collective Bargaining: The phrase collective bargaining is said to have been coined by Sydney and Beatrice Webb of Great Britain which is said to be the “home of collective bargaining”. The idea of collective bargaining emerged as a result of industrial conflict and the growth of the trade union movement, and was first given currency in the United States by Samuel Gompers. In India, the first collective bargaining agreement was concluded in 1920 at the instance of Mahatma Gandhi to regulate labourmanagement relations between a group of employers and their workers in the textile industry in Ahmedabad. The phrase collective bargaining is made up of two words — collective, which implies group action through its representatives; and bargaining, which suggests haggling and / or negotiating.

The phrase, therefore, implies “collective negotiation of a contract between the management’s representatives on one side and those of the workers on the other.” It also implies an original yet flexible position from which one of the negotiating parties, or both, may retreat gracefully to a position of compromise. In collective bargaining, a give-and-take principle is generally involved, for a rigid, hard or inflexible position does not make for a compromise settlement. 2. Collective Bargaining– Nature: Collective bargaining may be defined as a process of negotiation and other related pressure tactics (like threats, counter-threats) adopted by the employers and the organised workers represented by their union in order to determine the terms and conditions of employment. In other words, it is a technique adopted by the organisations of workers and employers collectively to resolve their existing or future differences with or without the assistance of a third party. Its ultimate aim is to reach some settlement acceptable to both the parties involved in industrial relations, although, each of them may try to impose its own terms upon the other through pressure tactics and negotiations. From the concept of collective bargaining, a few important facts pertaining to its nature become clear. These are: 1. It is carried out on a collective as distinct from an individual basis. That is, collective bargaining is bargaining by groups of people. 2. In the bargaining process, the main actors are employees, employers and their associations. 3. The object of collective bargaining is rule-making, i.e., reaching an agreement by specifying the rules pertaining to employment relationship. 4. The main focus of these rules is on the terms and conditions of employment.

5. Collective bargaining is a “civilized bipartite confrontation” between the workers and management with a view to arriving at an agreement, for the object is not ‘warfare’ but ‘compromise’. 6. It is both a device and a procedure used by wage-earners to safeguard their interests; it is an institution or instrument of an industrial organisation for discussion and negotiations between the two parties. 7. It is, moreover, a technique by which an attempt is made to reconcile the needs and objectives of workers and employers and is, therefore, an integral part of an industrial society. 8. The essence of collective bargaining lies in the readiness of the two parties to a dispute to reach an agreement or mutually satisfying settlement. It is concerned about the emotions of the people involved in it as well as with the logic of their interests. Collective Bargaining Process in India: Due to the inherent weaknesses in the Trade Unions growth in India such as multiplicity of Trade Unions, affiliation to different political parties, the political domination by politicians professing different ideologies, domination of outsiders in the executive, the Trade Unions are by and large divided. The employers, on the other hand, are fairly organised and are in a better position at the bargaining counter...