Collective Bargaining and Organizational Performance

 Collective Bargaining and Organizational Performance


 

Introduction

According to the Kenton, (2020) collective bargaining is a process of negotiating the terms of employment between employer and a group of workers. This dialogue includes such as employment working conditions, work hours, leaves, holiday pay, bonus and health & care benefits.

In the most instant collective bargaining occur between organizational management and employee union.

Impact of Collective bargaining 

Silva, (1998) observed that the sound industrial relationship between the management and employees create an environment conducive to increase motivation, productivity and development of employees. Further this relationship improve employees loyalty and trust.

Collective bargaining 
  • Improve satisfaction among the employees and increase job performance.   
  • Improve the quality of behavior of employer and employee at the work place. 
  • Offers opportunity to influence the better job performance to the employees.
  • Increase employees commitment and effort.
  • Motivates employees to work towards for better performance.
  • Reduce strike and unfair demands of employees.
  • Decrease the absenteeism of employees.
  • Increase recognition of employee therefore, improving productivity.
Therefore, collective bargaining has ample benefits to the organization as well as the employees. Due this better industrial relationship, organization performance increase and reduce the conflict between management and workers.

Impact on Sri Lanka Plantation Sector

Sri Lanka state plantation cooperation handed over the tea and rubber plantations to the private sector in 1992. After the privatization regional plantations companies join to the employees federation of Ceylon. Thereafter, they set foot in to the first collative agreement with plantation worker trade union in 1998. From this point plantation companies and worker trade union collectively discussed workers daily wage and other benefits to the workers. Also, they discussed about the framework of  worker productivity and outputs. 

Even with some conflicts this process had prevailed for nearly three decades and had effective mechanism to manage industrial relation issues in plantations. Plantations company performed well and workers are also satisfied with wage and the other benefits. 

Unfortunately, the present scenario is that the government has involved to fix the worker wage as 1000 rupees due to the political promise given by the election. Because of this, the entire collective bargaining process has collapsed. Plantations workers are only receiving 1000 rupee daily wage. The companies refuse to give any other benefits which workers had enjoyed in the past thirty years. Therefore, ethical relationship between companies and trade union has crumbled and both employer and employee are encountering negative consequences.                 

 

Conclusion

Collective bargaining is very much important to understand each other to establish fair industrial relationship to enhance the job related attitude and employee performance. As far as co-relationship stronger, the impact on employer and employee remain positive. 


References

Babalola, S. S. & Ishola, A., 2017. PERCEPTION OF COLLECTIVE BARGAINING AND SATISFACTION WITH COLLECTIVE BARGAINING ON EMPLOYEES’ JOB PERFORMANCE. ResearchGate.

Dissanayake, G., 2021. DailyFT. [Online]
Available at: http://www.ft.lk/columns/Plantation-wages-Collective-bargaining-or-otherwise/4-713904
[Accessed 28 April 2021].

Kenton, W., 2020. Investopedia. [Online]
Available at: https://www.investopedia.com/terms/c/collective-bargaining.asp
[Accessed 28 April 2021].

Silva, S., 1998. Elements of a sound industrial relations system.. East Asia multidisciplinary advisory team.

 




  

Comments

  1. Sureni DiasApril 28, 2021 at 6:24 PM

    Author show that the effects of unionism on organization performance.These effects vary significantly across industries, within countries, over time and between institutional contexts. In addition, unions are themselves extremely diverse organizations, both in terms of their objectives and their ability to act within the workplace

    ReplyDelete
  2. Ruwan HerathApril 28, 2021 at 9:34 PM

    Collective bargaining provides workers with a collective voice which may be more effective than dealing with managers one by one. Collective bargaining helps ensure adequate wages and working conditions and helps workers to receive a fair distribution of gains that might result from the introduction of new technology.

    ReplyDelete
  3. Janashi LamahewaApril 30, 2021 at 11:27 PM

    A well written article, According to a paper article written by L Fernandupulle , if the collective agreement is implemented properly in Sri Lankan planting sector many of the issues of the workers would be solved. It gives proof to confirm what the author has described under SL planting sector.


    ReplyDelete
  4. HemalMay 1, 2021 at 11:32 PM

    Good analysis of collective bargaining concept in to present crisis of Srilankan state worker daily wage issue
    Collective agreements between non-standard workers and employer will mitigate the negative consequence

    ReplyDelete
  5. Lakpriya WeerasingheMay 2, 2021 at 1:06 AM

    This is an interesting area to study about .
    The author has clearly mention ,how an organization can be benefitted through Collective Bargaining.
    Its bring a Win-Wim situation all most all the time irrespective of the situation.

    ReplyDelete

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