productivity bargaining

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Is a form of collective bargaining in which increases of pay are secured in return for changes in working practices which allow labour productivity to be raised. Productivity bargaining has a long history in UK industrial relations and the term was coined in the 1960s when the first productivity agreements were negotiated at the Esso oil refinery at Fawley in Kent. The practice of linking pay settlements to changes in work organization and patterns of labour use continues to this day, however, and is an important feature of many collective agreements, even when the term ‘productivity bargaining’ is not used. Recent examples can be seen in partnership agreements between trade unions and employers which link guarantees on pay and security of employment to acceptance of teamworking, flexibility, and annualized hours. [See annual-hours contract.]

Subjects: Human Resource Management.

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