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Collective Agreements

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Submitted By gulcin
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Collective Agreements

As the collective aggreements are the negotiating tool between shareholders and employees, I initially prefer to make the analyses of the systems this tool aims to serve. On one side of the spectrum there are capitalist firms, where as on the other side we can say there exist the Labour managed Enterprises. In order to propose a better alternative to replace the collective aggreements we think a swot analysis for both side of the spectrum from the employee and company perspective would be useful.

SWOT

Labour Managed Enterprise Capitalist Firm

Strength From Employee perspective:
Higher motivation
Job security
Higher trust in the company
Higher ownership
From Profitability perspective:
Higher productivity due to above From Employee perspective:
Flexibile mobility
Low risk
Stable income
No long term commitment requirement
From Profitability perspective:
Faster organizations
Quick decisions in a competitive environment
Experienced and educated management with vision
Long term profitability priority
Weakness Low motivation to self development
From Profitability perspective:
Insufficient commitment mechanism
(“I” comes before “company”)
Opportunities Increasing unemployment Rising individualizm culture
Threats Financing
Difficulty in raising Risk bearer capital Increased competitiveness
Increased importance of workers in productivity

As both systems carry pros and cons, an alternative to current collective aggreements would be a system in between such as “Enterprise Based Labour Unions” and collective aggreements aiming for higher involvement of employees in decision making process to develop a high degree of mutual trust and interest, and strengthen the direct relationships between employers and employees, rather than aiming only employees’ short term goods.
A further step would be to create two

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