(Solution) CIPD 5HR01 An evaluation covering the purpose of collective bargaining and how it works. (AC 4.3)


The term “collective bargaining” refers to the procedures used by employees to negotiate with their employers and through the unions to which they are members (Kenton and Schmidt, 2022). To get a consensus on the terms of the job requires negotiation. These terms include things like incentives, compensation, leave, working hours, and safety regulations. It is an effective strategy for addressing workplace issues and increasing employee remuneration. Better benefits, higher pay, and safer workplaces are examples of how effective collective bargaining is. According to the International Labour Organization, a collective bargaining agreement is an essential element or right for all employees, and as such, they have the right to communicate their grievances to their employers and to negotiate constructively about them.

 It thereby helps to reduce workplace inequities and provides workers with labor protection. Collective bargaining is done between the union representatives and the company management (Kenton and Schmidt, 2022). It starts when managers try to change workplace policies and practices or when employee contracts are due for renewal. Without the use of collective bargaining in organizations, many employers would have possibilities to mistreat and exploit their workers. As a result, it aids in ensuring that the workers are performing their duties in a suitable environment inside their organization.

For the strengths of collective bargaining, Godowski et al. (2020) argue that this process obtain a significant share of productivity gains as wages. This could also lead to an increased cooperation and increasing performance in their organisation. The drawbacks include biased to employees, immense time of implementation, broadening the gap of employers and employees with proneness to inequality.  

For the steps followed in its implementation, it include;

Preparation- This is used to apply collective bargaining process guided by an active identification of all requirements of the process. All the areas which need to be prioritised and improved are put into account and highlighted.

Negotiation- This include enrolling in a discussion and conversation which intended to review the working terms and highlight areas of improvement.

Contract ratified- By the employers and employees working in collaboration, they achieve a contract agreement appropriately. This is by reviewing contracts shared with various teams.

Resolving disputes incurred in contracts implementation- When the different parties fail to achieve a common agreement, legislations are used in specifying best practice in resolving these disputes. The best practice is harnessing on strikes, lockouts, mediations and arbitrations.

Changes of the contract– After entire parties agree with the changes already made on the contracts, they are fully embedded to the culture/ways of doing things in the organisation. By mutually agreeing with the issues identified as joint labour management committees are implemented for stakeholders satisfaction.