Trade union recognition is not a legal requirement in many countries around the world. And, many companies prefer to negotiate paying higher wages or making other improvements to terms of employment with individual workers instead of a trade union.
However, recognizing trade unions for the purpose of collective bargaining and dealing with them instead of a single worker has many benefits to employers.
What is trade union recognition?
Trade union recognition happens when an employer (business organization) formally agrees to carry out negotiations regarding payment, terms of employment and working conditions with a trade union instead of negotiating with each individual worker.
Trade union recognition is the legal process for employer recognition of the union, if there is no voluntary agreement reached with the workers.
Benefits for employer from trade union recognition
There are important benefits to employers from recognizing and working with trade unions including:
- Saves time. Employers can spend less time by negotiating collectively with only one representative of the trade union rather than with each individual worker.
- Fairer working conditions. It can prevent workers from feeling that one individual worker has obtained better term of employment such as payment, working conditions, work hours, shift length, holidays, sick leave, retirement benefits, health care benefits, etc. than others.
- Useful channel of communication. The trade union system can provide a business with useful additional two-way channel of communication with the workers. Any issues that workers have could be raised with management by the union as well as the plans of the employers could also be discussed with employees in advance.
- Disciplined workers. Trade unions can easily impose discipline on their members to prevent them from taking hasty industrial actions that could disrupt a business.
- Platform for discussion. Responsible unionism can give the business an invaluable forum for discussing issues of common interest and making new workplace agreements. In the long term, creation of this kind of partnership can lead to job security, increased productivity and growth in profits.
Bargaining with trade unions
Bargaining is the process of negotiation between employees and their employers to determine the conditions of their employment. In fact, bargaining can be either individual or collective:
- Individual. Done by an individual employee.
- Collective. Involving an employee association.
Negotiations can be with an individual employer or an employers’ association.
Collective bargaining explained
Collective bargaining is the process of negotiating the terms of employment and conditions of work between an employer and its representatives and employees’ representatives (trade union) on their behalf.
The process of collective bargaining usually begins with each side stating its own position. The trade union representing a group of workers will ask for improved payments and positive changes in working practices, while the employer will make an offer of a wage increase and alterations in conditions of employment.
The two sides negotiate with one another, each of them must understand that the other’s opening position is not necessarily the final offer. The representatives from each side will go back to their colleagues to discuss what is on offer. There is always room for negotiation before the two sides reach the final agreement.
NOTE: If the employer’s offer is considered fair, the trade union representatives will recommend to their members to accept it. Bit, if the employer’s offer is considered unfair, the trade union representatives will recommend to their members to refuse it. If the trade union’s claim is seen as reasonable, the employer’s negotiators will recommend that the business should be met it. But, if the trade union’s claim is seen as unreasonable, the employer’s negotiators will recommend that the business should be not met it.
During the process of collective bargaining, negotiators from each side will often get to know each other very well. This is because they will be sent back and forth to negotiate further.
It is in the interests of both employers and employees that collective negotiations have a positive outcome. A mutual compromise will need both sides to judge the situation skillfully and make concessions.
If collective bargaining is not successful, lack of agreement will ultimately result in some sort of industrial actions. There may also be a possible breakdown of morale and trust between business managers and workers which is harmful to the business in the long term.
In conclusions, for effective collective bargaining employees must be free to join trade unions while employers must recognize such unions. Trade unions must be independent of the employers and the state, and negotiate in good faith in their members interests. Employers and employees must agree to be bound by agreements.
