Content Introduction 3 What is Collective bargaining? 3 Research Objectives 3 Literature Review 4 Social Problems brought by strikes 7 Short term social problems 7 1. Affect companies’ normal daily operation 7 2. Reduce competitiveness of certain industry 8 Long term social problems 9 1. Reduce investors’ confidence 9 2. Increase turnover rate 10 Recommendations for Large Enterprises and SMEs 11 For Large Enterprises 11 1. Performance appraisal- Graphic rating scale 12 2. A clear promotion mechanism 13 3. Provide more channels for employees to voice out grievances 14 4. Envisage the requests of employees 14 Recommendations For Small and Medium Enterprises 15 1. Salary Review System to increase the mutual understanding 15 2. Envisage the working equity of employees 16 3. Encourage employees participate in the job redesign with manager 17 How can collective bargaining be adopted in Hong Kong? 18 Cultural limitations in application of collective bargaining power in Hong Kong 18 1.Low entry barrier for Labor Union in Hong Kong 18 2.Role and function of labor union 19 3.Foreseeable difficulties for small and medium enterprises’ employees 20 4.Inequality between employers and employees 20 Features of collective bargaining it should possess 21 Recommendations for the adoption of collective bargaining in Hong Kong 22 1. Define a clear list of interest members 22 2. The bargaining statement must be legally binding 23 3. Submit the financial record of every union to government regularly 23 Conclusion 24 References 25

Introduction
What is Collective bargaining?

Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements to regulate working conditions. (Syze, 2011) Actually, collective bargaining was once legalized in 1997, however, it