(Solution) 7HR01 Question 4 (AC 4.1) different forms of collective bargaining, one in a unionised and one in a non-unionised environment

Solution

Question 4 (AC 4.1) Identify two different forms of collective bargaining, one in a unionised and one in a non-unionised environment, critically analysing their role in determining pay and resolving differences. Explain to what extent either applies to your own organisation

Forms of Collective Bargaining

Pattern Bargaining in a Unionised Environment

In unionised sectors, pattern bargaining is a common collective bargaining strategy which involves bargaining with one employer or a group of employers and achieving a leading agreement, which becomes a benchmark for subsequent agreements throughout the entire industry (Green et al., 2022). Such form of bargaining ensures wage, benefit, and working conditions can be standardised while preventing wages from competition that is likely to destabilise labour markets. In a unionised environment, pattern bargaining contributes substantially to resolving disputes and determining pay by using collective strength (Garnero, 2020). Typically, unions will first negotiate with a main employer, setting favourable terms that will serve as the benchmark in their discussions with other companies. This approach ensures that there is some level of consistency in the employment conditions and minimises industrial conflict (Gavin, 2022). It also increases the bargaining power of employees by allowing unions to refer to already existing agreements in order to justify demands. Critics, however, argue that pattern bargaining may constrain employer flexibility, especially in sectors negatively affected by financial issues, by forcing employers to conform to set patterns despite wide variations in employer financial capabilities (Pernicka et al., 2021).

Pattern bargaining can help maintain wage stability, close wage gaps, and strengthen employee bargaining power. It prevents companies from undercutting wages in order to remain competitive thereby guaranteeing industry wide fairness (Rönnmar et al., 2023). Secondly, the pattern bargaining streamlines negotiations by establishing precedents thus minimising the chances of prolonged industrial disputes. It also builds labour unions by making them more powerful and able to impact several employers to achieve equitable outcomes for the employees (Benassi & Vlandas, 2021). However, the disadvantage is that it limits employer flexibility because firms are required to follow a standard of terms that do not allow for differences depending on the individual’s financial condition. In addition, this bargaining form may not take into consideration company specific circumstances such as technological changes and industry divergencies, hence inefficiencies may arise in employment relations (Garnero, 2020). The rigid adherence to pattern agreements can also restrict innovation in compensation structures that may better reflect an organisation’s goals. This is because exceptional performance may be difficult for employers to reward, while adjustments…..

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