Week 5

At its core, collective bargaining is the process used to regulate the employment relationship. Over 100 years ago, the Webbs identified that an individual worker is relatively powerless against a large organisation; collective bargaining balances that power.

We categorised the terms of these agreements into two areas:

  • Substantive Terms: The “effort for reward” (e.g., pay, bonuses, and working hours).

  • Procedural Terms: The “rules of the game” (e.g., how disputes are handled and who has the authority to negotiate).

The Three Functions of Bargaining

According to Chamberlain and Kuhn (1965), collective bargaining serves three vital roles:

  1. Economic: Fixing the price of labor.

  2. Government: Establishing a system of internal regulation and workplace rules.

  3. Decision Making: Creating “Industrial Democracy,” where management decisions become collective decisions.

The Irish Context: Volunteerism vs. Reality

Ireland traditionally operates under a Voluntarist system. This means unions and employers are generally not legally forced to recognise or negotiate with a union.

However, some argue this system is “broken” because it relies on the employer’s willingness to participate. If an employer refuses to engage, workers often have no legal recourse to force a negotiation.

Major Legislative Shifts: The IR Act & EU Directive

We examined a potential shift away from pure volunteerism toward a more structured legal framework:

  • We looked at and sought to understand the The Industrial Relations Act 1990

  • EU Directive on Adequate Minimum Wages:  It requires EU member states to promote collective bargaining to improve living standards. Ireland must has created an Action Plan (2026–2030) to increase the number of workers covered by collective agreements.

The “Union Advantage”

Why does this matter? Data shows that union density leads to better outcomes across the board:

  • For the Individual: The “Wage Premium” (higher pay), better pensions, more holidays, and increased job security.

  • For the Workplace: Higher productivity, more training, and better safety records.

  • For Society: Lower income inequality, more progressive taxation, and a stronger welfare state.

Remember: Many of the rights we take for granted, the 40-hour week, minimum wage, and equal opportunities, were won by unions for everyone, not just their members.

Resources: 

Government Action Plan

Week5