Posted: October 17th, 2013
Collective bargaining involves negotiations. It is the responsibility of the union to represent the employees. Union representatives of a certain company present contracts or proposals of employees to the management. Company B has more machinery hence a larger Company than A. Employees in Company B are more than those in Company A. The nature of the contract will determine which group of employees will have more bargaining power. When both companies present their contracts, the management will evaluate the importance and urgency of the matter in the contract. For example, Company A presents a contract about provision of transport from home to work and vice versa. Company B presents a contract on safe working environment. Company B’s contract has more bargaining power because this is an important issue, compared to that of Company A. It would be argued that according to labor laws, employees are entitled to safe working environment. Therefore, the management should make provision as soon as possible. In most cases, management is not responsible for employees’ transport. This only happens in special circumstances. This is why the management would consider as luxury hence low bargaining power (Chamberlain & Kuhn, 2005).
The bargaining power of a company may depend on the number of employees. The success of some contracts is determined by the number of employees in a company. For example, the contract may be asking the management to add more facilities due to the large number of employees. Company B will have more bargaining power because they are more than Company A. In some cases, the management looks at how many employees are in support of the presented contract. Company A has few employees compared to those in Company B. Some people may decide to support the contract while some may oppose it (Slitcher, 2000). Company A’s management may decide not to consider the contract because of the small number supporting it. Company B will get more bargaining power of the large number of employees. Even if there will be opposing employees, there will still be a quorum big enough for the contract to be considered. Employees’ bargaining power may be determined by ability to negotiate. The contract may be formulated in a way that suggests there is need to accept the contract. A good way of doing this is including how the company will benefit when the contract will be implemented. It will definitely make the management consider the contract. If the union representative is good at negotiations, Company B will have better bargaining power (Slitcher, 2000).
Collective bargaining is mainly done by union members. The union will prioritize the needs of the company with a larger number of employees. They are in a busier environment. They are likely to have more work related needs than Company A. Hence, Company B will have more bargaining power than Company A. However, the smaller size of Company A should not make be undermined or neglected. The employees have right to be served immediately, when they present their grievances. If it is possible, the employees should enhance their bargaining power. Companies should have favorable working conditions and mind their employees’ welfare. Those involved in presenting contracts should plan them wisely. They should be convincing enough. Sometimes a contract may b very important but it will not have the required impact to the management. That is why it should be planned and presented appropriately (Chamberlain, 2005).
Chamberlain, N. W., & Kuhn, J. W. (2005). Collective bargaining. New York: McGraw-Hill.
Slichter, S. H. (2000). The impact of collective bargaining on management. Washington: Brookings Institution.
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