productivity bargaining

productivity bargaining

see COLLECTIVE BARGAINING, PRODUCTIVITY.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

productivity bargaining

a form of COLLECTIVE BARGAINING that deals with ways of improving PRODUCTIVITY alongside WAGES and conditions of work. It can involve both change in existing work practice (see RESTRICTIVE LABOUR PRACTICE) and the introduction of new work methods that call upon the workforce to be more flexible and adaptable in exchange for improved pay prospects.

Productivity bargaining can help firms to become more efficient and more responsive to change in market conditions. More generally, productivity bargaining can improve the supply-side efficiency of the economy and counter COST-PUSH INFLATION. See SUPPLY-SIDE ECONOMICS.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005