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What is productivity bargaining?

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2010-10-02 14:41:38

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.

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