Evaluate the purpose of collective bargaining and how it works

Evaluate the purpose of collective bargaining and how it works. (ac 4.3)

Collective bargaining is a procedure by which employers and representatives of employees jointly negotiate terms of employment including wages, working hours, benefits, and other issues concerning labour. It is one of the key factors in industrial relations that determines the existence of the cordial work relationships and a productive environment.
Collective bargaining is used to foster a level playing field and carry out negotiations between employers and employees thereby promoting equality, justice and freedom of either parties.
Collective bargaining involves a structured process composed of several major steps. The first step is the election or appointment of employee representatives, usually the trade unions, who represent the employees. After that, the employee representatives negotiate the employees’ interests with the employer/their representatives, usually the HR department or the management team.
Throughout the negotiation process, both parties present their proposals and discuss the different aspects of employment ranging from wages, working conditions, benefits, and methods of addressing grievances.The negotiation may consist of multiple rounds of talks, each party presenting counter-proposals and compromises being looked for.
When an agreement is concluded, it is documented in a collective bargaining agreement (CBA) or in a collective agreement. This agreement sets out the terms and conditions of employment that both parties have negotiated and agreed upon. It is a legal contract and that defines the employment relationship.
The employers and the employees are the ones that stand to benefit from the collective bargaining. From the employer’s point of view, it ensures the continuity of workforce, reduces the probability of industrial conflicts and encourages positive workplace environment. It also enables employers to deal with the complaints and concerns that are raised by employees through this channel, thus, leading to improved job satisfaction and engagement.

To the employees, collective bargaining offers an avenue to express their worries, ask for better wages and working conditions, and also have their rights preserved. It enhances their empowerment and collective strength as they collectively bargain for improved working conditions and benefits.
Through collective bargaining agreement setting, a fair and balanced employment relationship between the employer and the employee will be established. It does so by using a structured negotiation process which is then formalized in a collective agreement that outlines the terms and conditions of employment. Thus, collective bargaining provides space for negotiation that promotes fairness, equality and mutual understanding in the workplace.

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