Collective Bargainingning: The Banning Theory Of Collective Bargaining

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Introduction
They have been various attempts from different scholars in explaining the collective bargaining process and the extent of union influence in this regard. These perspectives also focus on the issue of strike that occurs when the parties of employment fail to reach consent. The Hicksian model is a model of labour economics used to explain or help understand clearly with more insight to the bargaining process. In this assignment the hicksian model will be discussed in depth so as to understand various constituencies of the model. Furthermore the advantages and disadvantages of collective bargaining will be discussed so as to have a clear picture and understand on the matter. Examples are going to be used so as to validate and elaborate on some important aspects of the model.
Hicksian’s model of collective bargaining
In order to understand in depth the hicksian’s collective bargaining model a reference has to be made on collective bargaining. It is defined as the process by which the parties to the employment relationship (thus employers, trade unions and employers with their representatives) come together so as to negotiate an agreement with the regards to the terms and conditions of employment e.g. working conditions and wages.
As the organisation increases its profit margin employees also feel that their compensation levels have to be increase. Therefore before they make a request in this regard they evaluate profit margins of their organisation and then they make their respective Trade unions aware of their demands or the compensation levels that they desire (Sari, 2000).
The Trade unions together with the management of a particular organisation come together to negotiate new compensation levels or wages for the ...

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...io ( BAR).
According to Venter et. al. (2011) this variant is used to determine the cost of agreeing to the offer of the other side over the cost of disagreeing with offer that the other party offers. When the results of the BAR calculation is less than 1 that simple means that the cost of refusing the other parties offer is greater and there which means a concession has to take place. Conversely when the results are more than 1 this means that there is no reason for the party to amend.
The two parties will only settle depending on the results that are yielded on the Bargaining Attitude Ratio. In other words it is of no reasonable doubt that it also affects the length in which a strike is prolonged before a concession is reached. This is due to the fact that each party want to settle when the results are in compatible with or when they complement their expectations.

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