Collective bargaining is a process by which workers through unions negotiate with their employers their working conditions. This could be health and safety policies, remuneration, benefits, working hours and leave. Collective bargaining is a tool used to solve workplace problems. The sole objective of this negotiation is to arrive at an agreement between workers and employers thus cementing effectiveness, efficiency and productivity in the workplace. Collective agreement is the result of the process of collective bargaining.
Social and economic organization within the capitalist society have shaped power relationships between employees and their employers. Employers control the majority of economic power in society due to the ownership of the means of production along with workers reliance on their wages for subsistence. Unions are essential in regaining some of that lost economic power, and the strength of numbers has led to workers making advancements in wages and working conditions. However, unions success has been countered by capitalists through neoliberal policies that facilitate offshoring and increased competition for workers. The instability of job security has derailed unions mightily, and their dependence on their employers for survival has limited the
Collective bargaining • According to Dale Yoder, “Collective bargaining is the term used to describe a situation in which the essential conditions of employment are determined by bargaining process undertaken by representatives of a group of workers on the one hand and of one or more employers on the other.” • In the words of Flippo, “Collective bargaining is a process in which the representatives of a labour organisation and the representatives of business organisation meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer-union relationship.” Features of Collective Bargaining • It is a collective process. The representatives of both workers and management participate in bargaining. • It is a continuous process. It establishes regular and stable relationship between the parties involved. It involves not only the negotiation of the contract, but also the administration of the contract.
1. INTRODUCTION Definition of a trade union has been defined in a different ways according to the authors. According to Lester, R. (1958) defines a trade union as ‘an association of employees designed primarily to maintain or improve the conditions of employment of its members’. G.D.H Cole (1953) defines a trade union means ‘a trade union means an association of workers in one or more occupations – an association carried on mainly for the purpose of protecting and advancing the members’ economic interests in connection with their daily work. Sydney and Beatrice Webb defined a trade union as ‘a continuous association of wage-earners for the purpose of maintaining of improving the conditions of their working lives’.
Employee relations offer assistance in a variety of ways including employee recognition, policy development and interpretation, and dispute resolution. Once there was a time when “Employee Relations” meant labor relations everywhere around the world, negotiate, orchestrate, dictate. Human Resource professionals help negotiates collective bargaining agreements. The provisions of that contract defined the relationship between management, unions and workers. MethodologyResearch methodology is a systematic way to solve a problem.
Meanwhile from the view of the union, the more extended the strike duration, the larger the income loss and probability of a lose in job. The relationship between wage loss and the duration of the strike is represented by union resistance curve (Flatau, 2002). The highest salary union can bargain
Bishop (1989) also claims that the reliability of an employee performance is favorable only when the conditions of work are favorable and stable. Therefore it becomes harder to measure one’s performance objectively. Perry and Porter (1982) reported that “despite the lack of accepted criteria the performance of employees will still be calculated”. Perry and Porter (1982) and Bishop (1989) both argue the problem of objective measuring, however according to Bishop (1989) the problem even increases because most employers believe they can rate the productivity of their employees, and that it is done in an inefficient
Management as a representative of employer 's and trade union as a employees are involved in collective bargaining. Economic such as payments of union fees, salary increases, bonuses, working days or hours, leaves, and non-economic as union recognition, security, employee services issues are discussed in collective bargaining. There are three main processes involved in collective agreement: preparation, negotiation, and implementation. Preparation consists of researching, drafting, developing proposals. It should take in to account economic factors of demands.
McCoy, Campbell and Cuedeck as cited in Milkovich and Newman (2004, p.258) states that the employee performance depends on three conventional factors which are skills, knowledge and motivation. The latter factor, motivation has an important role in increasing the individual performance because of linking pay with performance. Perry, Engbers and Jun (2009) state that the employees would work harder because their financial rewards could result from their rising efforts. This argument is based on several motivational theories which agree that increasing salaries or bonuses are one instrument to encourage each employees performing well. This is also supported by Huselid as cited in Milkovich and Newman (2004, p.277) who found that there are a credible evidence of increasing performance from the implementation of pay-for-performance system in 3,000 companies.
(Besanko, David, Dranove, & Shanley, 2000) Thus, minimum wage leads to a rise in inequality. This would be explained using a hypothetical example. Suppose there were two people in the economy A and B who were getting equal wages $10. Now there is enactment of the minimum wage legislation that employers must pay atleast $12 wages. Due to this legislation, the employer decided to keep employee A in his firm and lay off employee B because employee A was better at work than employee B.