EMPLOYERS, WHY ARE THEY USING COLLECTIVE BARGAINING SOME TIME2nd DECEMBER, 2008Collective Bargaining is an effective tool of negotiation between the employee union representatives and the employer to determine issues such as wage, hours of work, employee benefits etc through the method of direct negotiations. In general, collective bargaining is also a means to carry forward a negotiation process between the employer and any group of employees to achieve a certain set of predefined objectives where both of the parties confer for some kind of common interest. The workers attain the collective power by conjoining and working in unison which gives them an edge of withdrawing their services or opting for other actions which might prove negative or hinder the employer’s business performance.
Keeping the disadvantage or threats of collective bargaining aside, sometimes employers do support collective bargaining as one of the means of job regulation for their employees. Collective Bargaining from a wider perspective, gives workers a right to challenge any unfair practices and managerial decisions. Being a part of the process of ‘job regulation’, collective bargaining, helps to put forward the genuine voice by the workers.
Collective bargaining in the private sector has noticed an early shift from the multi employer bargaining. Constant efforts have been made on the part of employers to link the pay bargaining in regard to firm productivity levels; on the other hand in the public sector multi employer or centralized bargaining still persists. Government acting as an employer has taken initiatives to work on the same directions as the private sector has been heading for, facing the challenges and weaknesses of the old, traditional system of Whitley model.
However the privatization of the public utilities such as the railways etc has been undertaken. Voluntary negotiations are preferred by the employers as it provides a chance to mitigate or lessen the uneven distribution of power within the workers. Management at all times remains an invariable dominant party in making such collective bargains. During the twentieth century, employers readily recognized unions for collective bargaining so as to curb the disruptions and commotions in the business and cultivate order and steadiness in the business. Employers are benefited by institutionalizing dispute settlement methods through dialogue which promotes and facilitates coordination.
Collective bargaining may help the employers by realizing industrial peace thereby aiding in improving industrial relations climate on the whole extending extends "social partnership". For employers collective bargaining may be advantageous in realizing market gains whereby the employers could explore or discover the current prevailing rates of labour in a particular industry (Gospel H F, Palmer G, 1993). Negotiations between employer and workers help in predicting the course of agreements which may be beneficial in maneuvering and manipulating outcomes for personal benefits.
Especially when bargaining is related on a multi-employment basis, the gains may be manifold as it helps in reduction of competition rates and fixing of wages out of shear contentions among the various firms. Equal labour cost for all competitors of the industry under a common sector agreement is advantageous as no competition prevails atleast on the part of the labour. The process of collective bargaining is nothing but an expression of the HRM function of the firm representing the social climate of the company.
Apart from market advantages, economic assistances may also be derived through the custom and practice rules of the agreements which may comprise of starting times, finishing times, tea breaks, entertainment breaks, transfer and wok allocations, which may certainly help in running of efficient and smooth business operations. (Gospel H F, Palmer G, 1993)