Types of Collective Bargaining

Collective bargaining develops employees’ responsibility towards the society and limits exploitation of labor during project operations. It can be of four types

Distributive bargaining

It is a type of bargaining where both the parties stress on supporting their own benefits. Distributive bargaining involves less flexibility and understanding between the parties because it priorities the interest of one party over other and leaves no scope for win-win situation.

For example, the employee union of an organization wants the organization to raise their salary. On the other hand, the organization wants to cut its total expenditure budget; therefore, it resists the demand of salary raise.

Now in such case, if both parties stress on their own benefits and priorities their interest over the other, it would be considered as distributive bargaining.


Supportive bargaining

It is a type of bargaining, where the parties focus on supporting the benefits of both. Supportive bargaining provides sufficient scope for flexibility, understanding and cooperation between the parties.

It considers the interests of both parties and finds a mid-way to control the loss of both the parties. Take the example of distributive bargaining where both the parties (the organization and the employee union) have different interest.

Now if the parties instead of stressing on their own benefits focus on supporting the benefits of each other, (i.e. the management listens to the demands of the union and takes actions accordingly or the union reduces its demands by understanding the financial condition of the organization) then such bargaining is known as supportive bargaining.


Productive bargaining

It is a type of bargaining which focuses on increasing productivity so that, both employers and employees are benefited from the outcome of negotiation.

For example, if the union and the management both consider that increased productivity is beneficial for both the parties, then they assimilate their goals towards a single direction that aims at increasing the productivity.


Composite bargaining

It is a type of bargaining where employees/unions bargain to get equity in matters, such as work norms and policies, salary level, growth opportunities, working conditions, and health and safety issues.

For example, when the union, apart from considering ways to increase productivity, negotiates on working standards to ensure that the work load of the employees do not exceed, it is termed as composite bargaining.

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