Why Is A Collective Bargaining Agreement Important

Perhaps the greatest benefit of this system is that a formal agreement allows both parties to know exactly what they can expect from each other and to be aware of the rights they have. This can reduce the number of conflicts that occur later. It can also make the operation more efficient. Collective bargaining is a process of bargaining between employers and a group of workers who aim to regulate wages, working conditions, benefits and other aspects of workers` compensation and workers` rights. The interests of workers are generally represented by representatives of a union to which the workers belong. Collective agreements concluded in these negotiations generally define the size of wages, working time, training, health and safety, overtime, claim mechanisms and rights to participate in professional or professional affairs. [1] In accordance with national laws and dissent, measures should be taken to allow voluntary negotiations between company representatives and workers` representatives on the regulation of wages and conditions of employment through collective agreements. [6] Since independence, the declared policy of the central government has been to promote the development of trade unions and the settlement of sectoral differences by mutual agreement. Collective bargaining fosters mutual understanding between the two parties, i.e. workers and employers. Question: How can companies preserve the right to collective bargaining? The ILO MNE statement encourages governments in countries of origin and host countries to encourage collective bargaining between multinational companies and their workers: “Governments, particularly in developing countries, should strive to take appropriate measures to ensure that lower income groups and less developed regions benefit as much as possible from the activities of multinationals.” [3] The MNE statement also states that “measures adapted to national conditions should be taken, if necessary, to promote and encourage the full development and use of voluntary bargaining mechanisms between employers or employers` organisations and workers` organisations to regulate employment conditions through collective agreements.” [4] Answer: Collective bargaining is a constructive forum for the treatment of working conditions and conditions of employment and relations between employers and workers or their respective organizations. It is often more efficient and flexible than state regulations. It can help anticipate potential problems and promote peaceful mechanisms to address them; to find solutions that take into account the priorities and needs of both employers and workers.

Healthy collective bargaining benefits both leaders and workers, and the peace and stability that fosters them benefits society at large. Collective bargaining can be an important institution of governance – it is a way to increase the consent of the governed by involving them in decisions that directly affect them. The right to bargain collectively with an employer strengthens the human dignity, freedom and autonomy of workers by giving them the opportunity to influence the definition of labour rules and thus gain some control over an important aspect of their lives, namely their work… Collective bargaining is not just a tool for pursuing external objectives… Rather, it is an experience as an experience of self-management that is in itself valuable… Collective bargaining enables workers to achieve some form of democracy in the workplace and to guarantee the rule of law in the workplace.