Forms of Bargaining

Forms of Bargaining

  • Unions favour national collective bargaining, as this gives them greater power and enables them to take advantage of economies of scale in negotiations.
    • It would be expensive for a union to negotiate separate agreements with a large number of employers
  • In most of the EU< collective bargaining is undertaken where unions will negotiate with associations of employers on industry-wide agreements.
  • In the USA and Japan (and sometimes UK), local agreements are more common; especially in the private sector
    • For local agreements, there is a single employer bargaining, with agreements being made at the company level.