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A Productivity Agreement Definition

Productivity negotiations are a compromise in labour negotiations. In exchange for the employer`s higher wage offer, the union accepts changes that increase productivity. The term is not an exact legal expression – contract negotiations can involve productivity negotiations without ever using words. The concept was developed in England in the 1960s and is widely used in countries with ties to the UK. An agreement between an employer and a union in which a wage increase is granted for a moderate increase in productivity. To reach such an agreement, productivity negotiations are needed to reach a compromise between the wage increase demanded by the unions and the increase in productivity demanded by the employers. The underlying principle is that if workers want more wages, they should be more productive. At least theoretically, the wage increase in a productivity collective agreement is paid for by productivity gains. Employers and employees use negotiations to determine the terms of the agreement, for example. B how much more money is on the table and what kind of measures should be taken to ensure better productivity. De: Productivity Agreement in A Dictionary of Business and Management » Search: “Productivity Agreement” in Oxford Reference » Topics: Social Sciences – Economics and Management Fraser Sherman, a graduate of Oberlin College, began writing in 1981. Since then, he has researched and written newspaper and magazine articles on municipal administration, legal proceedings, business, real estate and finance, the use of new technologies and the history of cinema.

Sherman worked as a journalist for more than a decade, and his magazine articles were published in “Newsweek,” “Air & Space,” “Backpacker,” and “Boys` Life.” Sherman is also the author of three film reference books, a fourth of which is currently in preparation. Management and workers are free to do any business they choose. For example, some UK unions have agreed on annual contracts that guarantee workers a certain number of hours a year instead of a week. This gives employers more flexibility in managing the workforce. Another option is to set specific production targets such as increasing production or reducing waste. .