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Key Economic Factors Influencing Collective Bargaining

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The terms of a collective agreement are the results of the collective bargaining process. Key economic factors mentioned above will influence how well the employer and union side can achieve their desired objectives, and materialize them into real terms within a new collective agreement. The overarching economic landscape, as well as the bargaining power of either side, typically determine the employer or union 's ability in reaching the desired outcomes raised in the bargaining process. Typically, one factor does not work alone in terms of its influencing power, the entire process is dependent on the strength of the economic factors combined, for either party.

Wages are one of the most negotiated topics at the bargaining …show more content…

Although the use of third-party arbitration____**, different factors may affect either sides abilities. Industries with high union representation may be a more beneficial position during work disruptions, as they typically have extended resources to better withstand a strike or lockout (SOURCE). Additionally, industries in which employers cannot ‘stock-pile’ resources, such as policing and nurses, will have increased pressure to see their employees back to work sooner than manufacturers who may have additional stock, extended the time they can survive without production (SOURCE). According to (source from class), there are typically lower rates of work disruptions in the public sectors compared to the private. This may be due to the greater resources for larger unions and prevalence of public service jobs, such as teachers, in the unionized public sector. (SOURCE). Employers who wish to lockout or withstand strike may depend on means of industrial ‘centralization’ during times of strike. The ability of centralization to reduce wage pressures and other collective agreement terms in favour of the employer will improve if options for other jobs of similar work for employees are lowered, due to the lock-out centralization of the

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