Law and You > Labour Laws > Collective Bargaining and Trade Unions > Disadvantages and Advantages of Collective Bargaining
Collective bargaining is a process of negotiating between management and workers represented by their representatives for determining mutually agreed terms and conditions of work which protect the interest of both workers and the management. Collective bargaining has been defined by the Supreme Court (“SC”) as “the technique by which dispute as to conditions of employment is resolved amicably by agreement rather than coercion”. In this article, we shall study advantages of collective bargaining.
ILO Convention No. 154 defines collective bargaining as referring to: “all negotiations which take place between an employer, a group of employers or one or more employers’ organizations, on the one hand, and one or more workers’ organizations, on the other, for:
(a) determining working conditions and terms of employment; and/or
(b) regulating relations between employers and workers; and/or
(c) regulating relations between employers or their organizations and a workers’ organization or workers’ organizations.” (Article 2)
Objectives of Collective Bargaining:
- To foster and maintain cordial relations between the employer/management and employees.
- To protect the interests of the workers and employer through collective action and by preventing unilateral actions from being taken by either party.
- To keep outside the government interventions
- To promote industrial democracy.
Advantages of Collective Bargaining:
Advantages of collective bargaining are as follows:
Collective bargaining gives workers a larger voice.
An individual worker under financial constraint cannot bargain with the cash-rich employer. In such a situation, the individual may be tempted to accept undesirable conditions including low remuneration. Here there is a fear of loss of a job in the minds of the worker. This fear may be due to the ignorance, illiteracy and industry-specific skill factors. Sometimes employers are in a position to control the bulk demands for the labours, and they may through combined action, force the workers to accept low wages. Collective bargaining allows workers to band together into larger groups like trade unions, create a louder voice that can help provide the benefits for the workers and employers.
Collective bargaining can improve a worker’s quality of life.
The collective bargaining agreements negotiated in good faith often support higher wages for each worker including additional benefits, such as healthcare access or retirement benefits. Workplace conditions become safer.
Collective bargaining encourages cooperation.
Collective bargaining is a process of negotiating in good faith between management and workers represented by their representatives for determining mutually agreed terms and conditions of work which protect the interest of both workers and the management. In collective bargaining there is give and take approach. There must be a balance, where everyone gets something they need, but not necessarily everything they want, through a perspective of sincerity or honesty of intention. Both sides are compelled to negotiate with one another for the benefit of both.
Collective bargaining creates relationships.
As discussed above, Collective bargaining encourages cooperation. The negotiation doe in a good faith can establish a strong relationship. That doesn’t mean employers and employees must become friends for the formation of a contract. There is a need for open lines of communication to be continually available for both sides to prosper in negotiations. This creates open lines of communication between all offices and parties involved, which can create beneficial community relationships over time.
Collective bargaining creates enforcement consistency.
Each worker and the employer is bound by the negotiated contract. Each party is bound by the policies and procedures included with the contract. That means everyone involved has legal standing should an issue at work come up in violation of the agreed-upon terms. When one group or party fails to live up to their standards in the contract, then the collective bargaining agreement is useful as a legal defence. Thus, employers, employees, and any union representation all have access to a higher level of security to defend their livelihood.
Collective bargaining creates a binding result.
Due to contract arrived after collective bargain, both the parties are bound. It is a legal standard that can be used as part of a legal defence. If one side or the other is not performing to the stipulations that have been set forth in the contract, then they can be held responsible to them by the injured party. This provides an extra level of security for employees and employers so they can defend their positions.
Collective bargaining can be modified.
Collective bargaining agreement is not forever. It is time bound. After the date of agreement ends, the agreement can be eventually changed. And new terms and conditions can be negotiated in the new agreement. Sometimes there may even be a provision to change the collective bargaining agreement within its operational time if both parties agree to do so.
Collective bargaining 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. 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, strikes can be avoided.
Disadvantages of Collective Bargaining:
Disadvantages of collective bargaining are as follows:
Collective bargaining may require everyone to be bound by the contract.
The stipulations in most collective bargaining agreements require all parties working for a corporation to follow the rules outlined by the contract. This can make it difficult for some employees to get their work done. It can also mean that some non-union workers might find their employment in jeopardy at the cost of unionized workers under some contracts, depending on local laws and regulations. That means a worker could start their job there without any influence on the negotiation process, then be bound by those rules without exception until the next contract period allows them to express concerns. New workers must agree with the terms and conditions of the current contract to be employed.
Collective bargaining is not always a process of fair representation.
some non-union workers might find their employment in jeopardy at the cost of unionized workers under some contracts, depending on local laws and regulations. That means a worker could start their job there without any influence on the negotiation process, then be bound by those rules without exception until the next contract period allows them to express concerns. New workers must agree with the terms and conditions of the current contract to be employed. That creates a situation where a few of the workers dominate a majority of the wage resources, reducing the possibility of equal success within the workplace.
Collective bargaining highlights personal differences.
During collective bargaining, groups come together to protect common goals, but there is no guarantee that the final contract will reflect their needs. There is a possibility of a shift from group thinking to individualistic representation during this process, there can be differences or even divisions that come up at the table which have never been discussed before. This can lead to feelings of betrayal for those that are present or targeted by those differences or divisions. The agreement must be approved by workers by majority. Thus, there are some workers whose aspirations are not fulfilled.
Collective bargaining is not always a process of fair representation.
An individual worker under financial constraint cannot bargain with the cash-rich employer. Unionised and non-unionized members operate under a different agreement. That usually means the union jobs pay better than the non-union positions. That creates a situation where a few of the workers dominate a majority of the wage resources, reducing the possibility of equal success within the workplace. There is a possibility that a minority can consume a majority of the available resources, which creates the possibility of the union eventually imploding.
Collective bargaining is used as a political tool.
Unionization is a politically-charged topic for many people and has been for some time. Many employers will actively discourage employees from taking steps to unionize. Union members may actively encourage workers to take the steps necessary to join the union. Similarly, it creates an environment that is more than just uncomfortable. Political parties enter trade unions as collective bargaining is often associated with fundraising.
Conclusion:
The top advantages and disadvantages of collective bargaining is to balance improve wages and working conditions with increased productivity and labor security for the employer. All parties typically give a little to get a little in the final contract, compromising to create something which is mutually beneficial to everyone. The benefits often depend on the skills of the negotiators involved and the size of a group represented, which means some agreements are less beneficial than others.
Related Topics:
- Introduction to Collective Bargaining
- Types and Pre-Requisites of Collective Bargaining
- Process of Collective Bargaining
For More Articles on Collective Bargaining and Trade Unions Click Here