In this article we go over some key facts about Collective Agreements and Collective Bargaining – and we try to decide whether it’s “good” or “bad”. The conclusion is that it depends on context.
We dealt with the general principles of collective bargaining and collective agreements in a previous article and will now turn to deal with its advantages and disadvantages.
A lot of arguments can be had, both against and in favour of collective bargaining, but the advantages and disadvantages thereof is to a larger extend dependent on the actions of those involved in the negotiation process and the terms and conditions committed to in the Collective Agreement e.g. a Recognition Agreement.
For this reason, it is imperative that employers seek legal advice and assistance before entering into any such agreements.
Let’s go over some facts about these Agreements – and highlight how it can be an advantage or a disadvantage, depending on its context.
Fact 1: Employees will be represented by knowledgeable and experienced union representatives
In most cases, these representatives possess the necessary knowledge to identify and address non-compliance with labour legislation and practices, which would have, in the past, remained undetected. Now, if you are the employer, is this good or bad for you? The answer is, it depends on how you are conducting your labour relations.
Fact 2: Employees will be less exposed to the fear of internal retribution
Since employees are represented, as a collective, by a trade union, you can expect to see a rise in engagements or even the boldness of employees during these engagements. There is safety in numbers and anonymity. For the employer, this could spell disaster. However, it can also give employees the chance to be more honest about their needs, which would otherwise never have been aired.
Fact 3: Employers are protected from whimsical and illegal “industrial action”
Unions will first engage the employer on matters of mutual interest and, failing any agreement, refer the matter to the CCMA or Bargaining Council such as the NBCPSS. Interruptions in operations will therefore be limited. This is a great advantage for the employer as their operations are more likely to continue uninterrupted. It is also better for employees, because many of them are often victims of the repercussions of an illegal strike undertaken by a select few – if the business can’t operate, it can’t pay them. Both sides win from this.
Fact 4: All employees will benefit
From an employee perspective, Collective Bargaining grants protection to all employees since all employees will benefit from negotiations between the employer and trade unions. Again, this is a great thing for those employees who would otherwise never have raised concerns about money, fairness, or safety.
Fact 5: Collective Bargaining provides employment security to employees
With Collective Bargaining in place, an employee’s services will very seldom be unlawfully terminated. When it is, they will have access to the necessary infrastructure to protect their interest in appropriate forums. This is an advantage for both employers and employees – job security for employees, legal conduct for the employer (which will benefit the employer if you briefly refer back to Fact 1).
Fact 6: Cases go to the CCMA more frequently
The outcomes of internal disciplinary actions are more regularly referred to the CCMA or other appropriate forums, which may in turn, lead to increased legal or related costs. This can be either a win, or a loss, depending on which end of the case you are.
Fact 7: Cleaner, neater negotiations
Negotiations are conducted between employers and trade union representatives, which does not require convening a large number of people or dealing with multiple points of view on the same subject matter. Again, this is an advantage for both parties.
Fact 8: Loss of productivity from shop stewards
Employees, who were elected as shop stewards, may conduct their duties during working hours under certain circumstances, which may lead to his/her periodical absence from work. This is not necessarily a disadvantage, since the employer can make arrangements around with with advanced notice and shop stewards do not need to sacrifice their personal lives to fulfil those obligations.
From these 8 facts we can see that there are certain advantages and disadvantages to Collective Bargaining – it all depends on context. In a healthy workplace it is highly likely that all parties will benefit from Collective Agreements and Collective Bargaining.
