Collective Bargaining Pros and Cons

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Collective Bargaining Pros and Cons

Collective bargaining is a common form of negotiation that takes place between employers and a large group of employees. It is designed to help reach agreements to regulate various working conditions. There are pros and cons to this approach and it is important to understand both sides.

List of Pros of Collective Bargaining

1. Opens a Forum for Discussion
Collective bargaining allows management and employees to come to the same table and engage in a discussion. Everyone involved will be able to understand the problem and address the issues. Both parties will have equal footing and will have the opportunity to work towards a collective goal – which will ultimately be a win-win for both parties.

2. Legal Platform
It opens up communication and the rights of both management and the employees are clearly stated. Everyone knows what their roles are, their rights are, and even their limitations.

3. Empower Employees
Collective bargaining can also empower employees to develop a healthy relationship between their employers. While they recognize that there is a hierarchy within the organization, they are able to find a safe venue where they are able to display their displeasure on certain working conditions or details about the business.

List of Cons of Collective Bargaining

1. Question Managements Authority
Collective bargaining can affect management in the way that they like to manage. If employees have too much authority and question management too often, it can result in the wrong party being too influential and this can lead to negative consequences as to how the company is viewed as a whole within the public’s eyes.

2. Close the Gap of Communication
Instead, it can cause further risks, particularly when there is sabotage by competitive companies or there is a strike that can affect not only the employees, and the company, but also the general public. For example, if a transportation company decides to go on strike as a result of helping to strengthen their collective bargaining chip, the employees are not getting paid and the general public loses out on their ability to take advantage of public transportation.

3. Time Consuming
A decision-making process may be slow down considerably because there are so many different people fighting for different working conditions. There is no authoritarianism and this can make it difficult to reach a sound decision where everyone is happy with the terms.

On a regular basis, you will be able to find collective-bargaining taking place between different companies and their employees. Some are handled better than others, but it is important to understand the pros and cons between this approach to determine whether it is something you are for or against.