Productive Bargaining

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When employers and employees enter into in order to increase the overall efficiency and productivity of the business. This type of negotiation is almost always seen in factory or construction work, although it may also be present in the film industry and other heavily regulated workforce areas. It is rarely used in service industries where specific types employee labor are not required.

Productivity bargaining is a more specific type of collective bargaining that occurs when managers begin to draw up specific ways that the employer/employee relationship will be changed. The goal of management in this case is to increase the productivity of the workers without having to hire more labor. In return, management agrees to raise the wages of the workers An organization employs people of different skills, experiences and competencies. Collectively they all have to work together to produce "results" for the organization, first in terms of goods or services-this is called "performance". The performance is then seen as financial results indicators like, Turn Over, Gross Profit, Net profits etc. In fact there are many ways in which to express "results".

The fact is that the prosperity of an organization is seen after the famous "break even point" where the organization has survived and it has been able to make neither profits nor has it made loss. The journey beyond this break even point is in the profit zone. But the fact is that this journey depends upon the "performance" which in turn depends upon the "collective effort" on the part of the members of the organization.

Generally members of the organizations can be divided in two broad categories-the bargainables (blue collered/white collered employees who in the eyes of law are "workmen") and the other category is the non-bargainable employees. As the name indicates, bargainable workmen can "bargain" for better terms & conditions of employment including wages and other facilities as they enjoy "protection" of...
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