The different types of bargaining are given below:
Types of Bargaining
1. Conjunctive Bargaining:
In this type of bargaining, the employers and employees try to maximise their respective gains. Issues like wages, bonus etc. are negotiated under conjunctive bargaining.
The principle “my gain is your loss and your gain is my loss” is practiced in conjunctive bargaining. The parties want to yield as little as possible while getting as much as possible from the other party. Conjunctive bargaining is also called distributive bargaining.
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2. Co-operative Bargaining:
In co-operative bargaining, both parties realise the importance of surviving in difficult times (like recession) and are willing to negotiate the terms of employment in a flexible way.
Labour may accept wage cuts and management may agree to modernise and make additional investment. Co-operative bargaining is resorted to with a view to survive the recessionary trends.
3. Productivity Bargaining:
In this method, worker’s wages and benefits are linked to productivity. If they are able to exceed the standard productivity norms, workers will get substantial benefits. Standard productivity is finalised through negotiations.
Productivity bargaining agreements are important for raising productivity and for survival and growth of the organisation.
4. Composite Bargaining:
In composite bargaining method, labour bargains for wages as usual but goes a step further demanding equity in matters relating to work norms, employment levels, manning standards etc.
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Through composite bargaining unions are able to prevent the dilution of their powers and ensure justice to workers by putting certain limits on the freedom of employers. For the employer this is lesser evil when compared to strikes and lockouts.