Collective Bargaining Essay

502 Words3 Pages
Discuss the rationale and purpose of collective bargaining According to investopedia.com 'Collective Bargaining' is the process of negotiating the terms of employment between an employer and a group of workers. The terms of employment are likely to include items such as conditions of employment, working conditions and other workplace rules, base pay, overtime pay, work hours, shift length, work holidays, sick leave, vacation time, retirement benefits and health care benefits. Collective bargaining could also be defined as negotiations relating to terms of employment and conditions of work between an employer, a group of employers or an employers' organization on the one hand, and representative workers' organizations on the other, with a view to reaching agreement. Collective bargaining involves discussions and negotiations between two groups as to the terms and conditions of employment. It is called ‘collective’ because both the employer and the employee act as a group rather than as individuals. It is known as ‘bargaining’ because the method of reaching an agreement involves proposals and counter proposals, offers and counter offers and other negotiations. The term collective bargaining refers to a good-faith business mechanism people use to reach an agreement. Through basic negotiation and other techniques, the people involved find solutions to work-related issues such as vacation time, pay, work hazards, training and work hours that ultimately benefit everyone. People call these processes “collective” because the opinion and well-being of the whole group, or collective, is involved. The Universal Declaration of Human Rights formally recognizes the ability of people to use this strategy. The primary objective of this bargaining system or voluntary negotiation between employers and trade unions aimed at reaching agreements which regulate working
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