What are the advantages and disadvantages of collective bargaining?

Answer 1

Unreasonable working conditions, unfair managers, or unstable duties.

Answer 2

collective bargaining has been around since World War 2 and has developed rapidly, some collective bargaining agreements are registered with the labour court and are binding by law, however others are only mutually accepted agreements.

the advantages of collective bargaining include:

· Its an open means of airing grievances in an orderly negotiating factor. employees which has issues regarding certain aspects of their work can address them in a calm collectiveenvironment.

· Redrsses the imbalance of power. employers have major power within society the use of collective bargaining restores a balance beteen employees and employers

· Flexible.

· Involves workers.

· Manages conflict. conflict between the social partners can be managed through negoation which in turn creates industrial peace and a harmonised society.

· Requires consent of all representatives involved.

collective bargaining encourages industrial peace and less strikes which is a major factor wich encourages FDI ( foreign direct investment)

Answer 3

Advantages of Collective Bargaining

Collective Bargaining is Flexible and Mobile and not fixed or Static : It has fluidity and ample scope for compromise,for a mutual give and take before the final agreement is reached or arrived at. ...

Collective bargaining is not a competitive process but is essentially a

complementary process : Each party needs something that the other

party has namely, labour can make a greater productive effort and

management has the capacity to pay for that effort and to organize

and guide it for achieving it's objectives. ...

Better Planning : The agreements that come from Collective bargaining are for set time periods, can allow management to plan for the future based on those agreements

Disadvantages of Collective Bargaining

Indian Labour owing mostly to ignorance or illiteracy,is not

capacitated with the responsibility to sit and discuss in the

course of Collective bargaining.

Collective bargaining though a solvent of for labour disputes lacks representation of the public interest at the bargaining table :When unions and companies agree on wage increase,it might cause rise in price ; then the consumer will have to shoulder the full burden of their agreement.

Collective bargaining in a capitalist society lie mainly in the financial

arena. Collective bargaining in the form of wage rounds leads to both

wage and grade drift :Wage drift leads to higher wage costs for

employers and higher inflation within the economy, which in turn

leads to higher interest rates and lower investment.

Answer 4

While collective bargaining was designed to benefit the employees rather than the employers, it can potentially benefit employers as well, by making the employees happy. Happy employees are less likely to quit. When employees quit, this is usually inconvenient for employers since new employees have to be trained, for most jobs.