What is the reason for a decline in pattern bargainingSoluti

What is the reason for a decline in pattern bargaining?

Solution

Before answering this first let us understand the meaning of pattern bargaining.

When a trade union bargains with an employer and get success and when he bargains to another employer for the same agreement. It is called pattern bargaining.

It is decreasing because trade unions are decreasing. And this is because of the global competition. Now the companies are making products is very lower cost. See China and Japan and India, They are making products at very lower cost. It is increasing the global competition. In America because of trade unions the employee costs were high. The unions used to bargain with employer to increase the pays, salary and benefit of the employees. Hence the cost of making the p[products were also increasing. Because of global competition the government had deregulated the trade unions. Now the trade unions are not in the more power that is leading the decline in pattern bargaining.

Another reason is that there were huge numbers of illegal migrant working in the company. They were feared of joining the union. This leaded to temporary work force. This plays a vital role in deregulation of the unions hence the decline of pattern bargaining took place.