5 Nov 2022

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How the Collective Bargaining Process Works

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Collective bargaining is a process that occurs between an employer and a group of employees in situations where specific issues arise. A union usually presents the employees during the procedures and negotiations such as regulating employee safety, training, and wages. In circumstances where an agreement is reached, the parties form a collective bargaining agreement which becomes the contract governing the employment problems. The collective bargaining process also consists of progressions that have to be monitored by both parties to achieve a consensus. Each of the parties usually has an opportunity to express their ideologies and present matters under consideration. For instance, the management body in a company uses mechanisms such as package planning or giving a false financial statement of the organization. On the other hand, labor unions research to identify proposals that appear to be an alternative to those of their employers. 

Collective Bargaining Challenges Experienced in the Modern Work Place 

Poor communication is one of the most experienced challenges in the bargaining process. In situations where employees experience issues in their workplace, they have to communicate with the upper management and wait for feedback (De Silva, 2014). However, the absence of reliable communication process leads to misunderstandings, thus creating confusion leading to strikes. The factors contributing to this issue include poor attitude and the selection of mediator with incompetence in overseeing the negotiating parties. For instance, if the mediator has a negative attitude towards the agreement, negotiation results in hostility and misunderstandings among the labor unions and employers. Under these situations, the problem is not handled properly and its effects become worse. 

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Collective bargaining in the modern workplace also experiences a challenge associated with the economic aspect in a particular country. For example, factors such as currency devaluation, inflation, and market forces of demand and supply influence the bargaining process. According to (De Silva, 2014), the economic aspects affect the negotiation process because they force one of the parties to accept offers that are not favorable to their wishes. For example, if an inflation rate happens, companies tend to react by increasing their product prices to alleviate the economic challenges created by inflation. Under such circumstances, labor unions tend to push employers for an increment in wages. Consequently, employers adhere to the requirements of the labor union though it may not benefit the organization. 

Collective bargaining in the workplace is also influenced by political power in the modern world. The government is considered to be one of the elements for determining the outcomes of the collective bargaining agreement, thus influencing the results of the negotiation process. For example, politicians usually intervene in circumstances where people have to come up with strategies for implementing a particular collective bargaining agreement among the labor unions (De Silva, 2014). Politicians form the jurisdiction that governs the economy of a nation thus being considered to be influential in determining the implementation of the collective bargaining agreement. In most cases, labor unions ask for increment in wages which cause a significant impact on the economy. However, the challenge originates from the fact that political power supports one of the parties involved in the collective bargaining process ignoring the other. Consequently, the collective bargaining agreement is not attainable because of the bias created by political power. 

Different Industries Have Different Factors to Consider In the Collective Bargaining Process 

Various industries have different factors to consider before undertaking collective bargaining. For instance, health and safety of employees are one of the factors that affect the collective bargaining process between labor unions and employers (Herbert, 2017). Different industries in the United States affect the functioning of the various departments in the organization. For example, accounting and the automotive industries in the United States need safety for their workers by protecting people from injuries. However, the requirements in the accounting sector differ from those experienced in the automotive industry because, in the latter, the employer has to prioritize the health and safety of their workers. In the automotive sector, workers interact with heavy metals, solvents and compound solvents which may have adverse impacts of the health of employees. In effect, the labor unions will always focus on ensuring that employers have strategic strategies for minimizing the risks that would arise from injuries associated with the work environment. 

Political influence on the collective bargaining process also differs from one industry to the other. Consequently, the description of what comprises the legislative role in collective bargaining varies from industrial orientation. The intervention of politicians in national industries has adverse impacts because in most cases, such collective bargaining is never successful (Herbert, 2017). For example, the involvement of politicians in the collective negotiations in the automotive industry is less compared to the intervention in the education sector. The education sector is a national industry and has a direct impact on the people in the society, thus calling for a need for direct involvement of politicians who represent the citizens. In the education sector, there is an implementation of several private investors who should adhere to the requirements of the government regarding the operation in such as sector. Most of the rules involve lower minimum wages for teachers and adherence to government rules regarding running private sectors in the education. 

Addressing the Collective Bargaining challenges as a Management Team member 

As a member of the management team, I would apply different strategies to ensure that there is a minimization of these issues. One of the successful ways of solving this challenge is to practice openness and honest whenever reporting information about the organization. For example, when reporting the financial statements of the firm, I will always ensure that there is an implementation of a strategic approach for ensuring that I forward the current and factual statements that could be useful in collective bargaining process (Herbert, 2017). By providing this information, the optimal agreement would be harnessed because the decision would be set based on information supported by data. Additionally, reporting accurate information will form the basis for bridging the communication gap that influences the outcomes of the collective bargaining process. 

As a management team member, I would encourage group participation as a potential intervention mechanism for minimizing the challenges associated with collective bargaining, especially in the education sector. Group participation is essential in motivating the different parties to contribute their ideas, thus providing a fair solution to the issue under collective bargaining (Berton, Carreri, Devicienti, & Ricci, 2019). I would also ensure that the subject under discussion is detailed and investigated to understand its nature and the impact of different intervention strategies. For instance, if the issue affecting employees is increasing in wages, the mediator, employees, and employers should investigate the matter to identify the impacts that a particular percentage raise in wage would have on the company’s financial report. 

Union Employees in Addressing Collective Bargaining Issue 

The union of employees can solve the challenges associated with collective bargaining by building trust with the employer. This intervention mechanism will be useful because it encourages each party to listen to the views of the opponents, thus resulting in a successful collective bargaining agreement. According to Berton, Carreri, Devicienti, & Ricci, (2019), a conducive environment for conducting collective bargaining is essential in determining the outcome of the collective bargaining approach. Creating trust improves the communication process because the parties involved feel free to give their views accompanied detailed research on the issue under discussion. Realizing the demands and the requirements of the team member becomes an appropriate way for reaching a collective bargaining agreement and creating strategic approaches to meet these requirements. 

Changes in the Collective Bargaining over the Last Decades and the possible causes for the Changes 

Over the last decade, the union and the management had distinct views regarding the offers the administration has been offering firm offers to the employee union. For instance, in most cases, employee union, especially in the education sector, has been calling for increment in wages. At the same time, the association has been reluctant to reach in a collective bargaining agreement (Duru, 2015). This issue is attributable to economic factors such as an increase in costs and prices. In effect, employees need increment in wages to improve their living standards while the organizations have the desire for maximizing profits. Improvement in social securities among workers such as health insurance among workers is considered a source of disagreement in the collective bargaining process among workers. 

In the last decades, employees in both private and public members have been joining collective bargaining, and the system has become more centralized. Currently, collective bargaining takes place in different settings, such as the industrial and national level. These changes are attributable to various reasons, such as changes in technology among the industries and impacts on individual levels. According to Duru, (2015), the increase in competition has become one of the causes for a need for implementing strategies that encourage workers to feel motivated by implementing offers that support their arguments in the collective bargaining process. 

Target Audience 

The target audience for this information includes employers, labor unions, and the employees who are affected by the challenges experienced in the collective bargaining process. These groups are essential in influencing the outcomes of the bargaining process because individual or group ideas and initiatives affect the result of a negotiation process. Employees, employers, and labor unions because the findings of the bargaining process have direct impacts on their outcomes. 

Summary Statement of the Findings 

The collective bargaining process is a critical aspect of promoting good relationships between workers and employers. However, the issues facing the collective bargaining process, such as political and economic factors hinder the achievement of the desired outcomes. These issues can be addressed by creating an environment for each party to give their views. 

Recommendations 

Employees, labor unions, and employers should play their roles and ethics to minimize the challenges experienced in the collective bargaining process to achieve optimal outcomes for the agreement. Political power should also be eliminated as one of the essential elements for determining the results of collective bargaining. In effect, the government should leave the parties to select their mediators independently to ensure that there is the promotion of reliable results of the negotiation process. 

References 

Berton, F., Carreri, A., Devicienti, F., & Ricci, A. (2019). Workplace Unionism, Collective Bargaining and Skill Formation: New Results from Mixed Methods. 

De Silva, S. (2014). Collective bargaining negotiations. International Labour Organization ACT/EMP publication. 

Duru, N. J. (2015). Moderator, Professional Sports: New Challenges in Collective Bargaining. 

Herbert, W. (2017). William Herbert on unionization and collective bargaining in higher education institutions. 

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StudyBounty. (2023, September 16). How the Collective Bargaining Process Works .
https://studybounty.com/how-the-collective-bargaining-process-works-essay

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