Essay: Impact of Collective bargaining on employee welfare

CHAPTER TWO.

LITERATURE REVIEW.

2.0 Introduction.

This chapter reviews the literature that is related to the research. This review is focused on the Impact of Collective bargaining on employee welfare in Shansteel as a multinational company in Sierra Leone .This review is drawn from a diversity of author writings (text books), published and unpublished materials, journals, articles, publications, magazines and internet sources.

The literature was reviewed in relation to the theoretical frame work and the study objectives. The literature will review the importance/benefits of collective bargaining to employees, employers and society. It will be followed by the importance of negotiation in rewards management. Moreover the review will determine the motivational strategies used by multinational companies in the work place to retain its workers ,the benefit of collective bargaining in improving health service and the effects of working conditions in the earning of wages , The review ends with a summary or conclusion.

-Theoretical framework .

– The importance/benefits of collective bargaining to employees, employers and society

-The importance of negotiation in rewards management and the process involve in negotiation

-Assessing employee welfare in multinational companies.

-The motivational strategies used by multinational companies in the work place to retain workers/employees.

-The effects of working conditions in the earning of wages.

-Summary review or conclusion on the impact of collective bargaining on employee welfare in multi-national companies in Sierra Leone.

2.1 Theoretical frame work-The theories of collective bargaining

Three major theories of collective bargaining include:

1. Tradition theory:

This theory considers economic condition in every nation as a major determinant of who wins in a negotiation between management and workers. In other words, economic forces determine who will be favoured in the negotiation of wages and salaries between employers and unions. When the supply of labour is higher than demand, employers will win, this indicates a situation of high level of unemployment in the economy; but if demand for labour is higher than supply of labour, workers stand the chance of winning. Another perspective of this theory is based on the argument that if the procedure and rules of the game is strictly followed, it becomes easy to reach a collective agreement.

2) Power model theory:

The argument behind power model theory is that the greater the demand that is made, the less power, union or employer will have in actualizing it. In other words, this theory says that if maximum/upper limit of demand is 5 and the union is asking for it, the probability of getting it is less than if they were asking for 2 or 3. The theory concluded that if people want to win in any negotiation, they must make less power of their opponent to disagree. Consequently, if a trade union wants to embark on strike and the management is aware that the consequence of such strike is likely to be devastating to them, they may quickly agree with the union’s demand and vice versa.

3) Behavioural aspect theory:

This theory views collective bargaining as a process of jointly making decisions on matters of employment and industrial life for the attainment of their respective goals. This process leads to mutual agreement or agreements for the improvement of mutual relationship and terms and conditions of employment. This theory is based on the fact that, the more cordial the social and interpersonal relationship, co-operation and attitudinal disposition between management and workers is high, the tendency to reach collective agreement without much hassle in the firm. Under this theory, collective bargaining agreements are a means of integrating union and management interests in a way that promotes the welfare of both.

Therefore as far as the impact of collective bargaining on employee welfare is concerned the behavioural aspect theory is the basis of this research.

2.2 The importance /benefits of collective bargaining to employees, employers and society.

Akpan et al.(2016):International Journal of Emerging Research in Management &Technology: Collective bargaining is important to the employees, employers as well as to the society or state.

Importance to the Worker /Employee.

• It is the process of making rules that govern the work-place jointly by both management and the union.

• Collective bargaining develops a sense of self respect and responsibility among the employees.

• It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group.

• Collective bargaining increases the morale and productivity of employees

• It restricts management’s freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged.

• Effective collective bargaining machinery strengthens the trade unions movement.

• The workers feel motivated as they can approach the management on various matters and bargain for higher benefits.

• It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

Importance to the employer

• It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers.

• It leads to industrial peace and thus saves the embarrassment and costs of strike action .Collective bargaining plays a vital role in settling and preventing industrial disputes.

• Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labour turnover to management.

• Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making.

Importance to the state/society

• It prevents negative effects of visible expression of conflicts. Collective bargaining therefore leads to industrial peace in the country

• It minimizes the need for state intervention and therefore ensures industrial democracy in an organization.

• Quick resolution of conflict through collective bargaining removes political instability

• It results in establishment of a harmonious industrial climate which supports which helps the pace of a nation’s efforts towards economic and social development since the obstacles to such a development can be reduced considerably.

• The discrimination and exploitation of workers is constantly being checked.

• It provides a method or the regulation of the conditions of employment of those who are directly concerned about them are reduced.

Importance to employers

1. It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers.

2. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labour turnover to management.

3. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making.

4. Collective bargaining plays a vital role in settling and preventing industrial disputes.

Akpan et al.(2016) International Journal of Emerging Research in Management &Technology) (

However, according to the International Labour Organization policy guide (2015)

Collective bargaining is a fundamental principle and right at work. It is also considered an enabling right. Collective bargaining can contribute to improvements in wages and working conditions, as well as equality. When effective, collective bargaining can help build trust and mutual respect between employers, workers and their organizations, and contribute to stable and productive labour relations.

A number of benefits or importance may arise from the effective recognition of the right to collective bargaining. These benefits or importance are set in themes namely job quality, equity, training, labour relations, enterprise performance and macroeconomic respectively.

Theme: Job quality

• Improves wages.

• Can be a tool for aligning wages and productivity .

• Enables negotiation of working time arrangements that balance workers’ interests in a work/life equilibrium, with employers’ interests in flexible working time.

• Can enhance access to social insurance.

• Can facilitate job security and employment protection.

• Creates opportunities for workplace participation (voice) .

Theme: Equity

• Compresses wage structures.

• Enhances gender equality.

• Can promote parity between workers in regular and non-standard forms of employment working in the same enterprise.

Theme: Training

• Can enhance access to continuing vocational training ü Tailors training to worker, enterprise and industry needs.

Theme: Labour relations

• Enables the acquisition of other rights.

• The process itself involves the exercise of rights and democratic principles.

• Provides a channel through which to “voice” and resolve grievances, which in turn enhances worker well-being.

• Institutionalizes the resolution of disputes and contributes to stability in labour relations.

• Allows for tailoring joint regulation to an industry or workplace.

• Legitimizes rules and increases compliance (with statutory or collective agreement provisions).

Theme: Enterprise performance

• Can facilitate the adaptability of enterprises to a temporary fall or rise in demand .

• Increases worker commitment and enhances the sharing of information (e.g. on work processes) .

• Is associated with a reduction in labour turnover, which increases the incentive to provide enterprise-specific training. This in turn contributes to improvements in productivity and product quality.

• Enhances the positive effects of workplace and technological change on enterprise performance .

• Enables the negotiation of productivity incentives or profit sharing schemes.

Theme: Macroeconomic

• Reduces inequality and allows for a fairer distribution of national income .

• Facilitates adjustment to economic shocks .

• Coordinated bargaining can have a positive effect on economic performance (inflation, employment, etc.).

• Higher coverage by collective agreements is associated with an increase in public expenditure on active labour market policies.

[COLLECTIVE BARGAINING • ILO -A policy guide 2015]

2.3 The importance of negotiation in rewards management and the process involved in negotiation.

According to the International Labour Organization policy guide (2015): Collective bargaining is a process of negotiation. Negotiation involves any form of discussion, formal or informal, with a view to reaching an agreement. For collective bargaining to be effective, it is important that these negotiations be conducted in good faith. Bargaining in good faith reflects an intention to engage in constructive negotiations and make every effort to arrive at a negotiated agreement.

However, negotiation is a process by which ‘two or more parties attempt to resolve their opposing interests’ (Lewicki et al., 2010)

Conflict has never benefitted anyone, instead it adds to one’s tensions and anxiety. It is better to discuss things and reach to an alternative agreement.. Issues must not be dragged unnecessarily and efforts must be made to come to a conclusion involving the interests of all. There is no point in being adamant and rigid. One should strive hard to negotiate with each other and consider the needs, interests and expectations of all.

Negotiation is only possible through communication. Good communication can change attitudes, prevent or overcome deadlock and misunderstandings and help to improve relationships. Moreover, good communication skills are essential to cogently relay your message, and to thoroughly understand the message of the other side (Wondwosen, 2006).Trust enhances this information sharing – both as a way to help the other understand our negotiation position and interests, and to learn more about the other party’s position and interests – and hence facilitates cooperation with the other (Irmer & Druckman, 2009).

Negotiation is essential everywhere. It is not only the corporate where negotiation is important but also in our daily life. We all must try our level best to adopt negotiation skills to avoid misunderstandings and lead a peaceful and a stress free life.

Negotiation is essential in everyone’s family to maintain peace at home. We all need to compromise with each other to some extent to avoid disagreements at home.

Negotiation also helps in effective buying. Every individual needs to save money for the rainy days. You just can’t spend money like anything. One must try his level best to negotiate with the second party to reduce the costs to the best extent possible. If you do not negotiate well you will end up spending more than required.

Negotiation reduces conflicts and improves the relation among individuals. We are human beings and unlike animals we live in societies and need people around. An individual must learn the skills to an effective negotiation to lead a happy and a peaceful life. Negotiation is essential for better bonding among individuals, lesser conflicts and a happy life.

However, the primary purposes of negotiation is the exchange of information between parties in order to persuade the other to ‘see it your way’. Trust is integral to this exchange of information

According to Watershed associates (2017), There are five collaborative stages of the negotiation process: Prepare, Information Exchange, Bargain, Conclude and Execute or Implement. Moreover, building trust in negotiations is key. Communication skills are critical during bargaining. Collaborative negotiations are an ongoing process, which build confidence, trust and strong relationships.

According to Lombardo J (2017) .Companies has to negotiate in numerous areas of organizational conflict. Negotiation is an open process for two parties to find an acceptable solution to a complicated conflict. There are five steps to the negotiation process.

1. Preparation and planning

2. Definition of ground rules

3. Clarification and justification

4. Bargaining and problem solving

5. Closure and implementation

Preparation and Planning

Preparation and planning is the first step in the negotiation process. Here, both parties will organize and accumulate the information necessary to have an effective negotiation.

Definition of Ground Rules

The second step in negotiation is the definition of ground rules. In this step, rules and procedures will be established for the planned negotiation.

Clarification and Justification

The positions of both parties are discussed at length and each side will get a chance to explain, justify and support their original request. This part of the negotiations should not be argumentative, but instead, it should provide the opportunity for each side to educate and inform each other about their position. .

Bargaining and problem Solving: The essence of the negotiations process is the actual give and take in trying to hash out an agreement. It is here where concessions will undoubtedly need to be made by both parties.

Closure and implementation: The final step in the negotiation process is formalizing the agreement that has been worked out and developing any procedures that are necessary for implementing and monitoring.

2.4. To assess employee welfare in multinational companies

According to Singh.B.D(2008):Industrial relation; Emerging paradigns, Welfare is used as a means to secure, preserve and develop the efficiency and productivity of labour. A happy and healthy person is a more productive worker and that the social security measures supports workers and their families during their non productive time arising due to disability, retirement or death.

However ,K.T.S(2013) in the journal of management sciences stressed that management should provide labour welfare activities to all workers in such a way that workers become satisfied. It increases productivity as well as quality and quantity and hence leads to improve profitability and products of the company.

Furthermore, Dr Chaneta.I.(2017) in the PeCOP Journal of Social and Management Sciences recognized that employee welfare is the responsibility of line management and supervision because they are close to each worker and that they should be in a position to identify any personal problems affecting the work of their subordinates. They should be able to either counsel the employees or refer them to the counselling agencies. However, welfare services involve individual or personal services in connection with sickness, bereavement, domestic problems, employment problems and elderly and retired employees. Moreover, welfare services can be Group services which consist of sports and social activities, clubs for retired staff and benevolent organisation.

(1).Personal services or Individual welfare services.

(A): Policy on Sickness.

The service aims to provide help and advice to employees absent from work for long periods because of illness. The practical reason for providing this service is that companies should help speed the return of the employee to work. Welfare needs can be established by keeping in touch with an absent employee. This can be done by rushing around as soon as anyone has been absent for more than say ten days or has exhausted sickness benefit from work. It is advisable to write to sick absentees, expressing general concern and good wishes for a speedy recovery and reminding them that the company can provide help and pay visit to the sick. The purpose of the visit should be: to show employees that their company and colleagues are concerned about their welfare; to alleviate any loneliness they may feel, and to provide practical advice or help. More immediate help may be provided to deal with pressing domestic issues.

(B) Bereavement

Bereavement is a time when many people need all the help and advice they can get, to help with funeral arrangements and dealing with “wills’’ of the deceased.

(C) Domestic problems

Employers who have any real interest in the welfare of their staff cannot ignore appeals for help. The assistance should not consist of bailing people out of debt whenever they get into trouble. However, in accordance with the basic principle of personal casework, employees can be counselled on how to help themselves or where to go for expert advice. A counselling service at work can do an immense amount of good, simply by providing an opportunity for employees to talk through their problems with a disinterested person.

(D) Employment problems

Employment problems should normally be solved by discussion between the individual and his/her boss or through the company’s grievance procedure. There may be times, however, when employees have problems over inter-personal relations, or feelings of inadequacy, about which they want to take to a third party. The most that can be done is to provide a counselling service which gives employees an opportunity to talk about their problems and allows the counsellor to suggest actions the employee can take to put things right.

(E).Elderly and retired employees

Welfare for elderly employees is primarily to prepare them for retirement and dealing with any problems they have in coping with their work. Preparation for retirement is a valuable service that many companies offer. Some companies have made special provision for elderly employees by setting aside jobs or work areas for them. Retired employees, particularly those with long service, deserve the continuing interest of their former employer. The interest need not be oppressive, but continuing social occasions can be provided for them.

(2).Group welfare service

Group welfare services mainly consist of sports and social clubs, although some companies still support various benevolent societies, which provide additional help and finance in times of need. Facilities can be provided within the firm’s premises if they are needed and are readily available. An investment in special facilities should be made only if there is a real likelihood of their being used regularly by a large proportion of employees.

Venugopal, Bhaskerand Usha(2013) in their study of employee welfare activities stress that adequate levels of earnings ,safe and human conditions of work and access to some minimum social security are the major qualitative dimensions of employment which enhances the quality of life of workers and their productivity .Moreover the availability of maternity benefits, retirement benefit, medical benefit, sickness benefit including dependants etc will go a long way to help workers. Moreover, Slater,Ruhm and Waldforgel(2013) pointed out that the availability of maternity leave is beneficial because mothers who would be otherwise quit their jobs will stay on them and use ‘leave’ instead and it extends duration of breast feeding may have positive impact for children’s future health and development. Furthermore, Earl,Mokomane and Heyman(2011) asserts that women who get paid maternity leave are more likely to return to the same employer after post delivery. Increased employee retention reduces hiring and training cost which can be significant(and include the cost of advertising the job, conducting selection process, training of new employees and sub optimal performance of the new workers during the initial period.

2.5. The motivational strategies used by multinational companies in the work place to retain workers.

Motivation is the driving force that makes people willingly want to put in their best in what they do. According to L. Deckers (2010), Motivation is a person’s internal disposition to be concerned with and approach positive incentives and avoid negative incentives. An incentive is the anticipated reward or aversive event available in the environment.

However, Pinder (2008) defined work motivation as a set of energetic forces that originate both within as well as beyond an individual’s being, to initiate work related behaviour, and to determine its form, direction, intensity and duration.

Motivated employees are needed in our rapidly changing workplaces. Motivated employees are needed for the survival of the organizations and it helps to increase productivity. Employee performance is directly related to motivational factors. Organizations can motivate the workforce by introducing appropriate reward and recognition programs and other benefits.. Effective reward and recognition system can be a good motivator but inappropriate reward and recognition program increase de-motivation of the employees.

According to Safiullah.A.B (2015) in the World Journal of Social Sciences the motivational strategies used by multinational companies in the work place to retain workers are as follows.

-Multinational companies provides opportunities for Career growth and Development

This is considered as one of the most powerful motivational strategies used by multinational companies for employees to satisfy their need for esteem and self actualization. It is also known as the intrinsic factor, which makes employees satisfied and highly motivated when it is met

– Multinational companies provides Job Security

According to Hossain and Hossain (2012). Job security is one of the major concerns of employees. In the age of downsizing, employees are always in a fear about their job security. Any minor changes in the working environment would make them worried about their security. Organizations have to ensure proper communication if any crucial change occurs in the organization.

-Multinational companies provide good salary/wages and other financial incentives.

Money is the most important strategy for motivating employees. However, good incentives should be provided with the aim of attracting and retaining qualified people and organizations should not rely solely on salary, bonus and other monetary and non-monetary incentives to motivate the diverse workforce.

– Provision of Good Working Environment

If organizations become unable to provide better working environment high dissatisfaction will arise from the part of employees.

-Multinational companies create a feeling of Team Spirit and Cooperation.

Obviously a healthy workplace where employees have cooperative and harmonious relationship with their co-workers and supervisors will lead to higher performance. If they have team spirit it will lead them toward synergistic solution.

-Multinational companies encounters challenging and interesting task .

Tyilana (2005) suggests that three motivational factors such as achievement, recognition and work itself caused 88% job satisfaction. If companies wish to enhance their employees‟ need for self actualization, they must have to provide interesting and challenging work that will propel employee innovation, creativity, sense of accomplishment and increased responsibility.

-Multinational companies value the work of their employees and recognize them.

Appreciation is one of the most top desires of employees which motivate and keep them productive by enhancing their morale. This allows them to enhance positive self evaluation and ability to contribute for organization.

-Provision of flexible time for employees.

Ensuring flexible working hour might enhance employees’ work-life balance which is extremely important for both male and female employees.

Moreover Irshad M(2007) in the Abasyn journal of Social Science) posited important motivational strategies that will retain employees in the work place and these strategies include:

-Organization culture play important role in employee retention. Family support and flex time culture is consider significant factor in employee retention.

-The salary of employee need to be increased, which will not only retain the present employees but will attract employees of other organization as well.

-Compensation, reward and recognition play a key role in employees’ motivation which leads to employees’ retention in the organization. Recognition of the employees’ inputs and outcomes need further improvements. This concept may be improved if organization introduced formal recognition system i.e. certificates, employee of the year etc. Reward should be awarded on merit and promotion should be on seniority and merit both, which help in production and retention.

-Similarly Training and career development leads to employee retention in the organization. A training program may be established as a regular practice for provision of training and retraining (refreshment courses) opportunities for their employees. This would not only satisfy employees‟ growth need but also enhance employee retention. Employees are offered multi training and career development opportunities so they should avail these opportunities to increase their marketability / employability.

-Work environment is key factor in employee retention. Employees leave the job due to work environment.

-Organizational justice (distributive justice and procedural justice) also play pivotal role in employee retention, it is revealed from study that, if organization want to retain their prowess employees, organization must fallow fairness formula. Employees want fair treatment and fair appraisal regarding the Human Resource practices, so organizations need to bring fair policy and communicate it to their employees.

-However, exist interview system may be introduced which will help management in answering the question why employees leave them, and then work on those areas which influence employees to leave their organization. Furthermore, a counselling system may be established regarding counselling employees for their career development, which will enhance employee loyalty with the organization

-Turnover rate should be monitor and consider it important in policy formulation regarding HR factors and organization factors; it will help management in retaining their employees.

. Fan, K. (2006) re-iterated in his working paper (How can multinational corporations retain their employees in China? These strategies includes:

1. Compensation: a) Salary: salary is important for multinational companies to take into consideration of the local economies and consumption characteristics while bearing in mind the salary guidance issued by the local government. b) Variable Pay: Pay for performance has become an inevitable trend in Multinational companies. It is a important task for multinational companies to educate employees the rationale behind variable pay to ensure their buy-in.)

(c.) Benefits: Multinational companies need to follow the laws and regulations to pay benefits for their employees. Benefits’ rates vary from location to location. Some items have flexible rates and multinational companies tend to choose the higher rates for employee retention purposes.

d) Allowances: It is normal practice to provide meal and transpiration allowances for employees. Although allowance may not require a big amount, it plays an important role in influencing employees’ perception towards their employers.

2. Training and Development: Training and development is the most commonly used strategy to foster employees’ commitment to companies. Once multinational companies cannot meet employees’ training and development needs with sources within the company, they mostly use education-aid programs to retain their employees.

3. Hiring: While many employees leave companies while they are still in the on-boarding process, it is important to build employees’ commitment to the company starting from hiring.

4. Managers’ training and communication: Multinational companies attach much importance to interpersonal relationship at the workplace. As a result, they may have a higher level of loyalty to their managers than to their companies. Therefore, it is critical to ensure managers’ commitment before attempting to retain employees.

5. Performance Management: Companies should link the performance appraisal to daily, informal coaching and formal training and development, thus placing the focus more on employee development and less on the evaluation of past performance.

6. Talent Localization: In multinational companies’ talent localization efforts, it is important to have the expatriate managers be willing to pass their knowledge along to their colleagues.

2.6. The effects of working conditions in the earning of wages.

The International Labour Organization’s (ILO) describes Working Conditions Laws Report to include working hours and annual leave, maternity protection, and minimum wages. Employee ‘voice’ can be described as the process of employees’ expression of their demand and expectations with respect to working conditions, such as: wages; working hours; health and safety conditions.

According to International Labour Organization( 2013): Research on the impact of prolonged periods of working long hours and overtime has identified negative short-term effects (such as increased injury risk) as well as adverse health effects (such as depression, strokes and heart attacks). Moreover, long working hours can lead to lethargy, loitering and loafing habits. Some research indicates that moderate overtime can have positive effects on both organizational and individual outcomes, if it is done voluntarily and appropriately remunerated. Moreover, flexible provisions can increase productivity and improve work−life balance, well-being, satisfaction, trust and motivation among staff and retention of valuable employees

SweeneyJ.J(2006) , Why workers count? the OECD observer highlighted that companies that fail to reward workers fully or provide incentives will not win the workers. They will be unable to harness the unique company specific knowledge needed to improve quality, productivity and build sustained competitive advantage. Workers need to appreciate the benefit derived from the welfare activities to themselves and their families. This appreciation should translate into commitment towards work and organization, loyalty, efficiency and productivity. If the company grows, the benefit will also increase and this would call for a positive attitude towards work and workplace.

Furthermore, the better management of employees through clear communication of employee voice can result in a wide range of benefits. Better management of employees would provide organisations with the opportunity to comply with various legal regulations which protect employees’ rights. This would not only protect organisations’ of being threatened by local and international laws but is likely to stimulate their performance.

Multinational companies may provide employees with flexible working conditions to enhance their work-life balance and thus increase their loyalty and commitment to the organisation values by showing respect in their lifestyles and personal conditions (Strayer University, 2007).

Work environment with culture of mutual trust breeds confidence, co-operation and harmonious relationships among the relevant parties (employers, management, and workers). This kind of atmosphere fosters increased workers’ morale and commitment to meeting performance targets of the firm or organization.

Moreover according to Salaria .P and Salaria.S (2013), welfare work in any industry/company aims at improving the working conditions of workers and their families. A good work environment and good working conditions can increase employee job satisfaction and the employees will try to give their best which can increase employees work performance. However, if companies create a fair competitive environment like fair treatment, fair compensation, fair work hours, these will improve employee attitudes. Fairness can also motivate employees to be hard working.

Moreover kalejaiye(2013), re-iterated that the health and safety of every employee in any industry or company is important if the company is to continuously operate to meet its stated goals and objectives..Hence a healthy worker is a productive and that health educational programmes be carried out to create awareness and safety measures should be provided for workers against health hazards. If the worker gets injured, sick or diseased due to occupational hazards then he/she should be duly compensated. Continuous attention to health and safety is important as ill-health, injuries and accidents inflicted by the system of work or working conditions cause sufferings and loss to individuals, their dependants and the company/industry.

However, sincerity on the part of employers and unions in the resolve to reach collective agreement reduces tensions, strikes, confrontations, lock-outs and other industrial actions capable of endangering and impeding industrial peace and frustrating organizational efforts toward goal attainment. Collective agreements lead to workers avoidance of dissipating energies in planning and development of combat and confrontational strategies against employers or government. Over-indulgence in union activities by workers has the potency to scuttle productivity and inefficiency.

Summary review or conclusion

Collective bargaining is a process of negotiation. Negotiation involves any form of discussion, formal or informal, with a view to reaching an agreement. For collective bargaining to be effective, it is important that these negotiations be conducted in good faith. Bargaining in good faith reflects an intention to engage in constructive negotiations and make every effort to arrive at a negotiated agreement.

Collective bargaining can contribute to improvements in wages and working conditions, as well as equality. When effective, collective bargaining can help build trust and mutual respect between employers, workers and their organizations, and contribute to stable and productive labour relations. The impact of collective bargaining on employee welfare will lead to better working conditions, good working environment, fringe benefits, gratuity, social security etc.

Welfare is used as a means to secure, preserve and develop the efficiency and productivity of labour. A happy and healthy person is a more productive worker and that the social security measures supports workers and their families during their non productive time arising due to disability, retirement or death.

Adequate levels of earnings ,safe and human conditions of work and access to some minimum social security are the major qualitative dimensions of employment which enhances the quality of life of workers and their productivity

Companies that fail to reward workers fully or provide incentives will not win the workers.

A good work environment and good working conditions can increase employee job satisfaction and the employees will try to give their best which can increase employees work performance However, if companies create a fair competitive environment like fair treatment, fair compensation, fair work hours, these will improve employee attitudes. Fairness can also motivate employees to be hard working..

Collective bargaining

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