hello everyone welcome to business school 101 have you ever wondered how employees and large organizations negotiate their wages working conditions and other benefits or how companies manage to maintain harmonious relationships with their Workforce while ensuring business productivity the answer often lies in a process known as collective bargaining but what exactly is collective bargaining how does it work what strategies are used in this process are there real world examples of collective bargaining in action in this video I'll Be discussing these questions with you section one definition collective bargaining is the process by which employers and a group of employees negotiate and agree on the terms of employment this negotiation is typically conducted between representatives of the employer and the employees who are often represented by a union the purpose of collective bargaining is to reach an agreement that regulates working conditions wages hours benefits and other aspects of workers compensation and rights it is a fundamental right in many countries protected by labor laws and international conventions section two process the process of collective bargaining involves several key steps each crucial to reaching a successful agreement step one preparation before negotiations begin both parties prepare extensively the union gathers input from its members to understand their needs and priorities while the employer assesses the financial and operational implications of potential agreements both sides often conduct research gather data and establish their objectives for the negotiation step two negotiation in this phase the representatives of the employer and the union meet to discuss the terms of the contract these discussions can be lengthy and involve several rounds of proposals and counterproposals the goal is to reach a mutually acceptable agreement on issues such as wages working hours health benefits job security and other working conditions effective communication and compromise are critical during this stage step three agreement once both parties reach a consensus the terms are formalized in a collective bargaining agreement CBA this contract is a legally binding document that outlines the rights and responsibilities of both the employer and the employees before the agreement is finalized it is typically subject to ratification by the union members who vote on whether to accept the terms step four implementation after ratification the agreement is implemented both the employer and the union are responsible for ensuring that the terms of the contract are followed the union typically plays a role in monitoring compliance and addressing any grievances that may arise during the term of the agreement step five renegotiation collective bargaining Agreements are not permanent they usually have a set duration often ranging from 1 to 3 years as the agreement nears expiration the process begins again with renegotiation where new terms are discussed and agreed upon based on changes in the economic environment business needs or employee concerns section three strategies several strategies are employed by both employers and unions during collective bargaining to achieve their goals strategy one interest-based bargaining IBB interest-based bargaining focuses on Mutual interests rather than opposing positions instead of negotiating based on demands both parties work together to identify shared concerns and develop solutions that benefit both sides this collaborative approach often leads to more sustainable agreements and better workplace relationships strategy two positional bargaining in positional bargaining each side begins with a fixed position and negotiates based on that stance this approach can be more adversarial as each party tries to gain as much as possible often leading to compromises that may not fully satisfy either side however it is a common strategy especially in contentious negotiations strategy three concession bargaining concession bargaining occurs when an employer seeks to reduce costs by asking the union to accept reductions in wages benefits or other conditions in exchange the employer might offer job security or other concessions this strategy is often used during economic downturns when companies need to cut costs to survive strategy four distributive bargaining distributive bargaining involves dividing a fixed amount of resources where one party's gain is the other party's loss this Zero Sum approach is often used in negotiations over wages or other finite resources it requires careful calculation and strategic thinking to ensure that the final agreement is acceptable to both sides section four real world example one of the most well-known examples of collective bargaining is the negotiation between the United Auto Workers UAW and the big three automakers in the United States Ford General Motors and Chrysler in 2019 UAW members went on strike against General Motors for 40 days the longest National strike in 50 years the workers were seeking better wages job security and the preservation of healthc care benefits after extensive negotiations the strike ended with a new 4-year collective bargaining agreement that included wage increases signing bonuses and a pathway to permanent employment for temporary workers the strike demonstrated the power of collective bargaining in achieving significant gains for workers while also highlighting the challenges of reaching an agreement in a competitive industry Section Five summary to sum up collective bargaining is a vital process that allows employers and employees to negotiate fair and Equitable terms of employment through careful preparation strategic negotiation and collaboration both parties can reach agreements that benefit the workforce while ensuring the organization's success all right that's all for today's topic if you have any questions or thoughts please leave a comment below I hope you found this video helpful and if you did don't forget to give it a thumbs up and subscribe to my channel thanks for watching and I'll see you next time