10 Most Valid Advantages and Disadvantages of Collective Bargaining
Collective bargaining, a term coined in 1891 by economist Sidney Webb. The basics of collective bargaining is when an entire group of employees negotiate the terms of their employment in a legally binding contract with their employer. These terms can be how much they get paid, the benefits they are offered, scheduled salary raises, vacations times, and even work hours. This form of bargaining has been widely used because it is mutually beneficial for the management as well as the workers, it also promotes clear communication of standards and expectations. While it may seem like a great option for all businesses to use, there are certainly issues for both parties involved.
The Advantages of Collective Bargaining
1. Provides Security To Workers
Since collective bargaining contracts are legally binding agreements, the employees can be sure of their work conditions. As long as all terms are followed, the management cannot go back or change any of the conditions.
2. Prohibits Strikes
This is the security that is provided to the management. Collective bargaining agreements prevent any employees from striking or not working to try to get different benefits. Strikes can cause huge problems within a company, so this is a big draw for management to use collective bargaining.
3. Gives Employees A Voice
All of the employees that the agreement will affect are allowed to have a say in the conditions. All voices are heard, which promotes a much better moral in the workplace. This also ensures that the wants and needs of the majority are met.
4. Reduces Bias and Favoritism
All too often you hear stories of someone getting additional benefits simply because of their relationship with their boss or other irrelevant things. This is greatly reduced, and possibly eliminated, with the use of collective bargaining. It evens the playing field for all employees.
5. Stabilizes The Business
Without the fear of layoffs, or wage cuts, people feel much more stable in their job and position at a company. The stability also comes in for the management because they can easily determine budgets because all wages and benefits are clearly laid out.
The Disadvantages of Collective Bargaining
1. Not All People Will Agree
Collective bargaining cater to the needs of the many and disregard the few. The terms in the agreement could negatively affect employees who have special circumstances or simply do not agree. In this case, these employees have no say.
2. A Loss of Authority
When employees know exactly how much power management has, and has a say in the things that they can and cannot do, their role as the authority figure is greatly diminished. Respect suffers immensely when collective bargaining is used.
3. Bureaucracy Takes Forever
Collective bargaining involves the use of bureaucratic systems. This extends the time that it takes to make decisions and implement any new policies into the work place, causing time and money for the company.
4. Reduces Managements Hand In Business
Constructive development is hugely hindered when collective bargaining is use. If a policy or term of the agreement truly needs to be revised or removed, it is nearly impossible to do so. The contract are generally multi year, which means that this time has to be waited before the changes can be made.
5. Equalized Pay Causes Problems
When you make benefits and pay the same across the board you are begging for issues. Workers who have worked at the company longer or who are much more skilled than other workers, will feel taken advantages of with equalized pay that collective bargaining results in.
