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Collective Agreements vs Individual Agreements

In: Business and Management

Submitted By timuni
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The current Labor government considers collective agreements rather than individual-level agreements are the most efficient and productive form of workplace arrangements for business. Do you agree? Why ? Why not?

The current Labor government considers collective agreements to be more efficient and productive than individual workplace agreements for business. This political ideology has been impacted by the changing nature of work and employment, where collective agreements and collective bargaining are no longer the most efficient and productive form of workplace arrangements for business. With the extrinsic pressures that come with an increasingly global market, business has to look at ways to increase productivity and profitability in order to stay competitive, and this requires greater levels of flexibility in the workforce. The key components of this argument are direct and indirect employee voice, and which is better for both the employee and employer. Are Trade Unions relevant as their bargaining position has been weakened by both a more global market, changes to more atypical labour types and Government legislation that emphasised individualism over collectivism (Hayter 2010).

Collective agreements are agreements between employers and employees which regulate workplace terms and conditions as a collective. This is generally instigated as a result of collective bargaining by a third party, primarily Trade Unions. Individual agreements, however, are between an employer and an individual employee, and can be instituted outside of any existing collective agreement. Collective agreements, are by nature, a more Pluralist approach to workplace management, whereas Individual agreements are aligned with a more Unitarist approach. Both of these management theories bring in to consideration managerial prerogative and employee voice in the workplace.

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