Collective bargaining

BeatriceWebb

File:Online Listings of Private and Public Sector Agreements

Online Listings of Private and Public Sector Agreements

Collective bargaining is a process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.

History

The concept of collective bargaining was first introduced in the late 19th century and has since become a fundamental aspect of labor relations in many countries. The term was coined by Beatrice Webb, a British sociologist and economist, who was one of the founders of the London School of Economics.

Process

The collective bargaining process typically involves the following steps:

1. Preparation: Both parties prepare for negotiations by gathering relevant information and setting objectives.
2. Negotiation: Representatives from both sides meet to discuss and negotiate terms.
3. Tentative Agreement: Once a preliminary agreement is reached, it is drafted and reviewed by both parties.
4. Ratification: The tentative agreement is presented to the union members for approval.
5. Implementation: Once ratified, the agreement is put into effect.

Types of Collective Bargaining

There are several types of collective bargaining, including:

• Distributive Bargaining: Focuses on dividing a fixed amount of resources, often leading to a win-lose situation.
• Integrative Bargaining: Aims at mutual benefit and win-win outcomes by addressing the interests of both parties.
• Concessionary Bargaining: Involves unions agreeing to give back previous gains in response to economic difficulties faced by the employer.
• Productivity Bargaining: Links wage increases to productivity improvements.

Legal Framework

The legal framework for collective bargaining varies by country. In the United States, the National Labor Relations Act (NLRA) governs collective bargaining and protects the rights of employees to organize and bargain collectively. In the United Kingdom, collective bargaining is regulated by the Trade Union and Labour Relations (Consolidation) Act 1992.

Importance

Collective bargaining is crucial for maintaining industrial peace and improving the working conditions of employees. It provides a structured method for resolving disputes and ensures that workers have a voice in the workplace.

Challenges

Despite its benefits, collective bargaining faces several challenges, including:

• Globalization: Increased competition from global markets can pressure employers to reduce labor costs.
• Technological Change: Automation and technological advancements can lead to job displacement and require new skills.
• Declining Union Membership: In some countries, union membership has been declining, weakening the bargaining power of employees.

Related Pages

• Trade union
• Labor law
• Industrial relations
• National Labor Relations Act
• Beatrice Webb
• London School of Economics

See Also

• Arbitration
• Mediation
• Labor rights
• Employment contract