Types of Bargaining

What is individual Bargaining?

Individual bargaining is the process by which an employer and an employee negotiate an individual contract of employment, regulating the terms and conditions of employment.

Advantages

The main advantage of individual bargaining is it is a single voice and thus there is no conflict in matters

Another advantage of individual bargaining is that it expresses the views and opinions of one person and thus there is no compromising

Disadvantages

The main disadvantage of individual bargaining is that the manager will not take a lot of notice of just one person’s views or opinions and therefore nothing will happen

Thus there is not a lot of chance that individual bargaining will have an influence on company decisions and policies.

What is Collective Bargaining?  

It is one way of minimizing conflict in the workplace.

It involves determining conditions of work and terms of employment through negotiations between employers and employee representatives, such as trade unions

These bodies represent the views of all their members and try to negotiate in their interests

Advantages

The main advantage of collective bargaining is that the manager will not take a great deal of time in deciding on what action to take on an individual level.

The employees have greater influence in the final decision the manager will take.

There is also a chance of the employees getting what they demand.

Disadvantages

The main disadvantage of collective bargaining is that it is seen as depriving the individual worker of their individual liberty and voice.