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 Productivity bargaining is the type of collective

bargaining.
 In this method, worker’s wages and benefits are
linked to productivity.
 Without such productivity bargaining agreements ,
workers may not realize the importance of raising
productivity for organizational survival & growth.
 In this, a standard productivity index is finalized
through negotiations , if they are able to exceed the
standard productivity norms , workers will get
substantial benefits.
 Productivity bargaining requires an explicit link
between changes in work practices and changes in
compensation.
 The real impact of productivity bargaining is that
change in the attitude of employees as they have
 Productivity bargaining provides
solutions to many of the typical problems
of industrial relations.
It closes the gap b/w rates of pay &
actual earnings.
 It enables demarcation difficulties to
be eliminated or reduced.
It concentrates decisions at the level of
the company or factory.
 
 
In recent years productivity bargaining has been
heralded as a promising means of increasing
productivity in government, particularly at state and
local levels. As the cost and size of government
continues to escalate, there is a growing concern
over increasing the efficiency and effectiveness in
the delivery of public services. Productivity
bargaining as one tool has the attention of a small
but growing number of public officials who see this
technique as one rational method of resolving the
conflicting pressures generated by the demand for
government services on the one hand and limited
resources on the other.

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