Evaluate the arguments for and against collective bargaining in the UK - Essay Example

Informational differences provide an appealing explanation for bargaining inefficiencies. Even the development of noncooperative bargaining theory, which provided the tools and served for the collective bargaining, did not work out so well as it was expected. However a general aim of this theoretical development is followed i.e., to inform policy makers of the efficiency and equity effects associated with different labour laws and institutions that govern and shape the collective bargaining process1.

While these laws and policies are still in developing phase, they can already offer many insights into the interplay between policy and the bargaining process. (Bargaining, 2005a) Collective bargaining is specifically an industrial relations mechanism or tool, which is applicable to the employment relationship in order to avoid unpredicted disputes. In collective bargaining the union always have a collective interest since the negotiations are for the benefit of several employees as well as for the organization.

Where collective bargaining is not for one employer but for several, collective interests become a feature for both the parties to the bargaining process. In labor relations, negotiations involve the public interest such as where negotiations are on wages, which can impact on prices. This is implicitly recognized when a party or the parties seek the support of the public, especially where negotiations have failed and work disruptions follow. Governments intervene when necessary in collective bargaining because the negotiations are of interest to those beyond the parties themselves.

In collective bargaining certain essential conditions need to be satisfied, such as the existence of the freedom of association, a labor law system etc. Further, since the beneficiaries of collective bargaining are in daily contact with each other,