Meaning of Collective Bargaining
Collective bargaining is the process of negotiation between the two parties in order to arrive at a mutual agreement. It is happened commonly between the representatives of labors and representatives of business organization, when these both comes under some disputes with each other they negotiate to arrive at mutual decision. The employer and the employees have disputes on working hours of the employees, working environment of the organization and salary/wages of the employees. These kinds of disputes are solved by negotiating with each other by considering demands of both employer and the employees.
Types of Collective Bargaining
Conjunctive or Distributive Bargaining
This kind of collective bargaining is concerned with the employee and the employer who negotiate with each other but for their own gain only. It is zero-sum negotiation in which one party have to suffer loss and the other party will gain. If the employee is gaining then the employer has to suffer loss. It happens when the employee wants a hike in the salary/wages and the employer wants to increase the workload and reduce the salary/wages.
Co-operative or Integrative Bargaining
In this kind of collective bargaining the employer and the employee both has to agree on a common solution in similar interest of both the parties. The employee has to work according to the employer and the employer has to put efforts of making better working conditions and high-end technology for increasing the production.
This type of collective bargaining is done by the employer to increase the productivity of the organization. The workers are encouraged to work more for which they will get benefits like incentives or bonus. Workers work very hard to reach beyond the standard level of productivity to gain the additional benefits in form of bonus. This type of bargaining is a gain for both the employer and the employee as they both get benefits. Employer gets increase in productivity and employee get benefit of bonus or incentives.
In this type of collective bargaining the employees are not only concerned with the hike in wages/salary but also concerned with the working conditions, recruitment of the new employees, training policies of the organization etc. The employees are concerned about these things to safeguard their interest and dilution of their powers.
In this type of collective bargaining the employees surrender or give back the previously gained improvements in pay and conditions in exchange of the job security of the employees. The employees have to give back the benefits they previously get from the employer to secure their jobs.