AC4.2 Evaluate the purpose of collective bargaining and how it works
Topic: Evaluating the purpose and functioning of collective bargaining, including various mechanisms.
Guideline:
In this question, learners are tasked with evaluating the purpose of collective bargaining and how it operates, taking into account different mechanisms. Learners should provide examples to demonstrate their evaluation of the purpose and function of the discussion. The discussion will involve “agreement on relevant matters” and this may be demonstrated by reference to legal documents, for example, Kostal UK Ltd from the CIPD’s recognised business and industry collection. These specific cases demonstrate illegal actions by the employer towards union members, which would cause their terms and conditions to fall outside the scope of the collective agreement. They should therefore address the following areas:
- Discuss Purpose of Collective Bargaining.
- Discuss the Mechanisms for Collective Bargaining.
- Outline the Differences in the Power of Employee Bodies.
- Analyse the Outcomes of Collective Bargaining.
- Discuss how to ensure Fairness and Representation.
- Give examples.
- Provide evidence.
Purpose of Collective Bargaining:
Learners should explain the fundamental purpose of collective bargaining, which is to negotiate terms and conditions of employment between employers and trade unions. They should discuss how to explore the purpose of collective bargaining and understand its role in fair labour negotiations from a global perspective. Learners should also put emphasis that it seeks to safeguard workers’ rights and enhance their working conditions.
Mechanisms for Collective Bargaining:
Learners should discuss various mechanisms used in collective bargaining, such as joint negotiation committees, employee forums, staff councils, and works councils. They should also explain how these mechanisms facilitate negotiations.
Differences in the Power of Employee Bodies:
Learners should analyse the differences in the power and influence of employee bodies in the collective bargaining process. They should also discuss such factors as the size of an organisation and the strength of trade unions. When explaining the difference between the power of the group and the need to examine the influence of organisations and non-organisational groups, learners should ensure they provide real-world situations as examples.
Outcomes of Collective Bargaining:
Learners should evaluate the outcomes of successful collective bargaining, such as the establishment of collective agreements that specify terms of employment, pay scales, and other benefits.
Ensuring Fairness and Representation:
Learners should put emphasis on how collective bargaining ensures fairness by representing the interests of employees and balancing the power dynamics between employers and employees. Learners should discuss ways of ensuring fair and representative participation in dialogue and discussion of strategies for stakeholders and provide insight from examples that support honest discussion of processes.
Real-Life Example:
An example of the purpose of collective bargaining that learners can use includes a trade union negotiating a pay increase for its members, resulting in a new wage structure for all employees in a manufacturing company. In cases where a works council is involved, they may negotiate changes in working conditions and shift schedules on behalf of the workforce.
Sources of Evidence:
Learners can reference employment law and industrial relations literature for insights into the purpose and mechanisms of collective bargaining. They can also draw evidence from case studies or publications that provide real-world examples of successful collective bargaining outcomes. Among the sources of references that learners can cite includes:
Gennard, J., & Judge, G. (2005). Employee relations. CIPD Publishing.
Marchington, M., & Wilkinson, A. (2002). People management and development: Human resource management at work. CIPD Publishing.
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