Home / Collective Bargaining

Collective Bargaining

Collective bargaining, as its name suggests, is a group action that involves negotiations between the employee representative and management on employment issues to reach an agreement. The collective agreement is an understanding because of the terms and conditions under which the service is to be performed.

The terms of employment include elements such as working conditions, workplace rules, hours of work, wages, compensation, pension benefits, overtime, salary with wages, etc.

The discussion takes place between the union leader, who acts as the union representative and the employer representative. It incorporates the process of negotiating, administering and interpreting the collective agreement. The functions of collective bargaining are:

- Formulation of workplace rules
- Determine the form of compensation
- Standardization of compensation
- Setting priorities on each page
- Rescheduling the negotiating mechanism.

Definition of negotiation

Negotiation refers to a process that allows people of different interests to reach a mutually acceptable agreement on a problem, but at the same time seeks to increase the benefit to be gained for their interest group. The basic purpose of negotiation is to reconcile the differences between employer and employees and suggest ways to meet their expectations.

Negotiation is a common technique adopted by an ordinary person in daily life, e.g. Negotiating things like higher pay, settling a dispute with the colleague or settling business conflicts. There are four approaches to negotiation:

  • Win-lose orientation: An approach adopted by competitive communicators based on the premises that only one party reaches the goal while the other loses.
  • Lost orientation: In this approach, the conflict takes place in such a way that both parties suffer harm and feel like a loser.
  • Compromise: When the parties agree to settle on achievable results at best, it's known as compromise. In this approach, the parties find it better to compromise than to fight the fight.
  • Win-win orientation: Last but not least is a win-win orientation that's cooperative and meets the requirements of all parties involved.

Key differences between collective bargaining and negotiation

The points below are significant as regards the difference between collective bargaining and bargaining:

Collective bargaining is a process through which the group of workers adorns the contract with the employer to determine terms of employment, such as wages, working hours, health and safety. Conversely, negotiation is a process where people from different interest groups meet and achieve a mutually acceptable outcome of a problem while maximizing the benefit to be gained for their interest group.

Collective bargaining is competitive in the sense that one party tries to make the other party agree to their terms. Conversely, negotiations are cooperative, so it seeks to find the best achievable outcome for both parties.

In collective bargaining, the relationship between two parties is a win-lose relationship, with one party winning and the other losing. Unlike negotiation, there is a win-win relationship between the parties involved, with both parties getting something from the discussion.

While collective bargaining is trying to prove who is right, negotiations are about proving what is right.


Generally, the legislative process by which the employer and employees agree on the working conditions is collective bargaining. At the other end, negotiation is a purposeful process that aims to reconcile the differences between management and the union by devising methods for resolving the differences.

See also:
Share on Facebook Share on Twitter Share on LinkedIn
Back to top

Home | About Us | Contact | Privacy Policy | Terms of Use

Copyright 2011 - 2020 - All Rights Reserved