Analysis On The Effect Of Trade Union In Collective Bargaining

With the deepening of conflicts between labors and employers, more and morelabors take collective bargaining as the valid way to protect their legitimate rights andinterests, meanwhile, the union scale expanded. In order to analyze the specific effectsof unions under collective bargaining and to give suggestions, we based on thedomestic and foreign literatures, sort out the theory of trade unions, research theunion’s effects, and study the foreign&private enterprises’ Union effectquantitatively, then we give relevant recommendations.First, through the theoretical analysis, we find that the trade unions function isfighting for the rights of employees. Pareto improvement is the motivation ofcollective negotiation. Collective bargaining is a cooperative game. The results of thenegotiation depend on many factors, including the participant negotiation skills, thenegotiators’ strength, the overall economic situation, and so on. Through thetheoretical analysis, we find that trade union have positive impact on wage, butuncertain impact on employment.Then, we analyze the present situation of collective bargaining and the union; wefind that most unions are ineffective. The main reason is that the right of union’srepresentation is blemished, the establishment of unions&workers congress isinsufficient, the publicity of collective bargaining is insufficient, the quality ofcollective bargaining contract is low, and the related law is imperfect.Furthermore, we select the2005-2011panel data of31provinces&citiesnationwide, to make econometric analysis on trade unions’ effects. We find that uniondensity has a negative effect on employment; and a positive effect on wage. We findthat most of our union is invalid; the part-time labor union cadre ratio is too large; thecollective contract covering rate is low.Finally, we give suggestions as follows. Firstly, realize the transformation oftrade union functions and status. We should change the union’s duty from the singlefunction of safeguarding of workers’ interests into the function of safeguarding bothworkers’ interests and employers’ productivity. Secondly, perfect the construction ofunions in enterprises. Unions should be in accordance with “constitution of theChinese trade unions”, take the protection of employees’ legitimate rights andinterests as its basic duty, and finish the union’s transition from political group tooccupation group. Thirdly, strengthen union’s ability in negotiation. Pay attention tothe collective salary negotiation methods, skills; improve the efficiency of thenegotiations. At last, strong government functions from two aspects--regulations andconsultation services.