Pattern bargaining is a collective bargaining strategy where individual employee unions and employers reach agreements based on a pre-established collective bargaining settlement that has been developed in another context or organization. This method can streamline the negotiation process, ensuring that the terms and conditions of employment are relatively uniform across different employers within the same industry or region.
Types of Pattern Bargaining
National Pattern Bargaining
National pattern bargaining involves setting a standard agreement across the whole country. When strong national pattern bargaining is practiced, almost all agreements across various employers and unions resemble each other very closely. This can be beneficial for maintaining industry standards but may reduce flexibility for individual negotiations.
Example: If a national bargaining agreement is established in the steel industry, it ensures that wages and conditions are uniform across all steel plants from one end of the country to the other.
Regional Pattern Bargaining
This type of bargaining focuses on a specific region rather than the entire nation. While it creates consistency within the region, it allows some variation from the national standard; hence, it offers a middle path between uniformity and flexibility.
Example: The auto industry in the Midwest may follow a pattern bargaining agreement that differs somewhat from the agreements used in the Northeast or the South, reflecting regional economic conditions.
Strong vs. Weak Pattern Bargaining
Strong Pattern Bargaining: Results in very similar agreements across different unions and employers, restricting the room for individual negotiations.
Weak Pattern Bargaining: Allows more flexibility, enabling the adaptation of agreements to the specific needs and circumstances of individual employers and unions.
Historical Context
Pattern bargaining has historical roots in the industrialization period when unions sought to standardize wages and working conditions across multiple sites of a single industry to prevent undercutting and unjust labor practices. It gained prominence in mid-20th century industries where large, nationwide corporations and strong unions were involved, like the automotive and steel industries in the United States.
Applicability of Pattern Bargaining
Pattern bargaining is primarily used in industries where there are large-scale employers and a high degree of job similarity. It is less common in highly specialized sectors or those with significant variations in job roles and working conditions.
Benefits
- Ensures consistency in labor terms.
- Provides a template for negotiations.
- Creates a level playing field across companies.
Drawbacks
- May reduce operational flexibility.
- Can be less responsive to local conditions.
- Might stifle innovation in labor agreements.
Comparisons and Related Terms
Collective Bargaining
Collective bargaining is the broader process where unions and employers negotiate employment terms. Pattern bargaining is a subset of this, where a pre-existing agreement influences these negotiations.
Industry-wide Bargaining
This process aims to standardize terms across an entire industry, providing even more universal agreements than pattern bargaining might facilitate.
FAQs
What is the primary advantage of pattern bargaining?
Can pattern bargaining be applied to small businesses?
How does pattern bargaining affect wages?
References
- Freeman, R. B., & Medoff, J. L. (1984). What Do Unions Do? Basic Books.
- Katz, H. C. (1993). The decentralization of collective bargaining: A literature review and comparative analysis. Industrial and Labor Relations Review, 47(1), 3-22.
Summary
Pattern bargaining is a collective bargaining strategy where individual agreements are influenced by a pre-established settlement. It aims to standardize employment terms within industries or regions, increasing consistency but potentially reducing flexibility. Understanding the nuances, historical context, benefits, and drawbacks of pattern bargaining can provide valuable insights into labor relations and industrial negotiations.
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