Collective Bargaining Simulation


Collective bargaining simulation refers to a state where a small group of people tends to negotiate different labor relations issues. This activity is essential in industries as it takes place between the union and the organization’s management to come up with a collective agreement on an issue that the company might be experiencing. This negotiation requires some different steps, which in turn help in coming up with the final answer to the problem being solved. Therefore, in this case, the Marvo metal products and the Local 247 Canadian Fabricators Union met in the negotiation of a wage increase from the original payment. As a result, the union took the lead in coming up with the collective agreement through different negotiations based on the activities carried out in the industry. Upon negotiating, the union, together with the management, agrees to increase the wages by 2% rather than 3% as proposed in the ongoing.

Therefore, reviewing the negotiation process and the final answer from the discussion, the final proposal was not far from the actual final settlement since the final answer has a very minimal difference from the actual proposal. Besides, the settlement involved a particular settlement strategy to come up with the final collective agreement with mutual consent and cooperation taking the first lead. These strategies involved coming up with the general purpose of the negotiation with both parties in participation: the union in charge of the negotiation and the management entitled to give the final answer concerning the issue in bargaining. Therefore, this strategy involved identifying wages as the issue in question and giving different views to determine the best solution for the problem. Also, recognition of the union by the management as the primary bargaining agent helped in coming up with the collective agreement. Besides, representing the issue in different meetings was vital in identifying the final answer which both parties agreed on. Besides, both parties might have decided on the particular clause since all were eligible for giving their views. After checking on both parties’ desires comparing with the organization’s state, these parties might have agreed on the particular clause due to the industry’s capabilities.

Based on personal views and standing on the management side, the management side got a good deal based on personal analysis since it is in charge of the company’s rights, promotions, transfers, and making meaningful rules within the industry. Therefore, this collective agreement might have been a win for the management since it is responsible for anything that fails to go well within the organization. For example, a higher percentage increase of the wages within the organization might have affected the organization negatively since increased wages have to affect production or the amount of money to be injected into the industry. In the negotiation process, only limited problems might have been experienced in the agreements, such as different proposals and views, but they were eligible for settlement at the end.

The settlement for the wage issue has a great impact on the continuity of both parties since both show their prowess in handling the company’s problems every time they arise, and as a result, the company is in a position of building solid trust in the management as well as the union. As a result, the collective agreement gives both parties opportunities to embrace their roles in the company in the process of moving the company forward in terms of production and service delivery.

The settlement might affect the relationship between these parties positively in the future since both parties agree that they can negotiate on a particular problem and come up with a meaningful answer without both having issues in their negotiations. Besides, the amicable agreement is critical in their future performance since it ensures no grievances left behind between the two parties. As a result, both parties are in good relations with each other in the long run. Besides, the collective agreement ensures continued mutual respect and trust between these parties since both display discipline in the way they handle the matter. As a result, respect and trust are maintained as before. Also, the peaceful settlement guarantees both parties chances of future collaboration in solving the company’s problems. Lastly, the agreement forges a strong relationship between both parties since they both exhibit beneficial communication skills. Through this, the two parties are in a position to exchange ideas and goals, which lead to the improvement of the industry performance.

Besides, the collective agreement positively affects the performance of Marvo since the company identifies its parties’ capabilities in handling issues which the company might be facing in the future. Besides, through this successful settlement, the company is in a position of building strong trust in the parties’ capabilities towards building the companies empire. Besides, the company is in a place of entrusting the parties with their long-term goals towards the industry’s expansion, and as a result, this successful agreement gives these parties credit towards the organization.

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