What are the advantages, disadvantages and objectives of collective bargaining?

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In case you were wondering what are the advantages, disadvantages and objectives of collective bargaining? We advise you to carefully read the following guide where we will talk about it. In turn, it is important to know the types of reports in business management accounting.

What are the advantages, disadvantages and objectives of collective bargaining?

What is collective bargaining?

First of all, it will be necessary know what collective bargaining is . In general terms, we can describe collective bargaining as a dialogue between employee representatives and employers. These conversations are born with the aim of negotiating and establishing aspects related to work.

In collective bargaining, as mentioned before, we will talk about general issues related to work, which often include wages. The conditions of work are another aspect that is faced in this type of negotiations, looking for a mutual benefit between workers and employers.

Of course, this usually has positive results, as there is direct negotiation. This type of interaction usually creates lasting and positive bonds between the various agreements. As an entrepreneur, we also recommend that you know the 5 steps in the process of a successful negotiation.

What are the advantages, disadvantages and objectives of collective bargaining?

Collective bargaining is a very interesting proposal, it has many positive aspects, but it is not perfect . That said, it is highly recommended that you know the common advantages and disadvantages that are usually mentioned when it comes to collective bargaining. For this we invite you to read this information carefully.

Advantages of collective bargaining

This proposal presents many advantages , in any case some are indicated as the most relevant and which in most cases represent the most notable positive aspects.

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In the vast majority of cases, collective bargaining will deal with very relevant aspects, such as wages. When faced with this type of negotiation, usually a better remunerated salary is foreseen for workers. This is a direct consequence of the dialogue between the employee representative and those offering the job (employers).

Everyone knows the company

A very positive aspect for both parties (employees and employers) is that both parties will be aware of what is happening in the company. Thanks to collective bargaining, both employers and employee representatives (and therefore workers) will discover and get to know the vast majority of circumstances that occur in the company.

Increase in productivity

In general terms, constant communication between managers and employees often helps with productivity issues. This is mainly due to the fact that, as the name indicates, there is a negotiation in relation to the conditions. Dialogue leads to agreements that usually benefit employees and make them work more motivated, which usually increases productivity.

Also in relation to this it is advisable to know what sales management is and its importance for companies.

Disadvantages of collective bargaining

As we pointed out earlier, collective bargaining is not perfect and has its many details that need to be known. For this reason, please read carefully the most common disadvantages of this type of negotiation.

It involves extra expenses

Establishing the meetings where the conditions of the employees and the company will be discussed involves some additional costs . These contributions usually represent a salary discount, and while minimal, many may disagree.

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There may be disagreements

Although collective bargaining seeks to balance the well-being of employers and workers, many times there are not agreements that please everyone. Effectively, it is not a perfect system , which is why some parts of the company may disagree with certain decisions.

This can be a common problem in this type of way of working, although in most cases the benefits tend to outweigh the negatives.

In addition to all that has been shown above, as an entrepreneur you should know the benefit and importance of continuous quality improvement in companies. This and the issues discussed above are important to your success.

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