What is productivity bargaining?
A form of collective bargaining leading to a productivity
agreement in which management offers a pay raise in exchange for
alterations to employee working practices designed to increase
Productivity bargaining has been described as "an agreement in
which advantages of one kind or another, such as higher wages or
increased leisure, are given to workers in return for agreement on
their part to accept changes in working practices or in methods or
in organization of work which will lead to more efficient working.
The changes in the interests of efficiency are seen as an integral
part of the bargaining and as necessary contribution to meeting the
cost of advantages conceded to the workers."
The prime purpose of productivity bargaining is to raise labour
productivity and lower unit labour costs, and this is achieved by
the exchange of alternations in working practices for increased
leisure, higher remuneration for labour, more comprehensive fringe
benefits, and general increase in the status of manual employees.
Moreover, it is an exercise in problem solving and creating new
gains, rather than just power bargaining over shares.
Productivity bargaining is a complex process. It involves
lengthy, detailed negotiations about the implementation of a
variety of management techniques such as work study and job
evaluation. The content of negotiations is more or less
comprehensive in the sense that it includes not only bargaining
over earnings but bargaining over other related matters such as
reductions in hours, introduction or extension of shift working,
manning of machines, demarcation lines, the introduction of new
payment system, and re-allocation of job control. In addition, the
coverage of productivity bargaining is more or less comprehensive
in that generally speaking it will aply to all employees in an
enterprise. Productivity bargaining generally occurs at the level
of the enterprise or company.