What impact does collective bargaining have on the organisation and society?
Sounds like an essay question for a peice of homework you have to hand in tomorrow. Economic issues: Consider imperfect competition caused by imperfectly allocated wages wage floors above the equilbrium thus there is unemployment there is the insider -outsider theory where people in Unions don’t care about people outside of the organisation and will raise the equilibrium wage rate Unions have more power over wage setting which is not always optimal for the firm or the union thus there is higher standards of living for the people who are employed but not to those who are unemployed. less workers can be employed because of higher wages Business Studies’ issues: slows production down require negotitation to keep individuals motivated a stakeholder group the company would like not to get involved with there is increased communication with the company and its workers training is expensive and the workers to replace the existing workforce may be hard to find there is an issue of expectations
