Collective bargaining

Collective Bargaining

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Beatrice Webb, a key figure in the development of collective bargaining.

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Beatrice Webb, a key figure in the development of collective bargaining.

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 developed by Beatrice Webb, a British sociologist and economist, in the late 19th century. Webb, along with her husband Sidney Webb, was instrumental in the formation of the London School of Economics and the Fabian Society.

Process

The process of collective bargaining typically involves the following steps:

1. Preparation: Both parties prepare for negotiations by gathering relevant information and setting objectives.
2. Negotiation: The parties meet to discuss their demands and proposals. This stage may involve several rounds of discussions.
3. Bargaining: The parties attempt to reach a compromise on the issues at hand. This may involve trade-offs and concessions.
4. Agreement: Once a consensus is reached, a formal agreement is drafted and signed by both parties.
5. Implementation: The terms of the agreement are put into practice.

Types of Collective Bargaining

There are several types of collective bargaining, including:

• Conjunctive or Distributive Bargaining: This involves a zero-sum negotiation where one party's gain is the other party's loss.
• Cooperative or Integrative Bargaining: This is a win-win negotiation where both parties seek to achieve mutual gains.
• Productivity Bargaining: This focuses on linking wage increases to productivity improvements.
• Composite Bargaining: This involves negotiations on a variety of issues, including wages, working conditions, and job security.

Legal Framework

The legal framework for collective bargaining varies by country. In the United States, the National Labor Relations Act governs collective bargaining in the private sector. In the United Kingdom, collective bargaining is regulated by the Trade Union and Labour Relations (Consolidation) Act 1992.

Impact

Collective bargaining has a significant impact on labor relations and the economy. It can lead to improved working conditions, higher wages, and better job security for employees. However, it can also result in increased labor costs for employers.

Challenges

Some of the challenges faced in collective bargaining include:

• Power Imbalance: Employers may have more power than employees, making it difficult to reach fair agreements.
• Economic Conditions: Economic downturns can limit the ability of employers to meet employee demands.
• Globalization: The global economy can affect local labor markets and bargaining power.

Also see

• Trade union
• Labor law
• Industrial relations
• Arbitration
• Mediation