Coordinated bargaining is when all unions in the same organization bargain simultaneously as a joint body to form common bargaining goals or to negotiate similar terms with the employer by sharing information then that form of bargaining.
So coordinated bargaining is an effort to achieve common bargaining goals by two or more unions of the same corporation, bargaining separately but simultaneously, by assisting each other by sharing information or any other assistance.
Coordinated bargaining can also take place between multiple employers.
When several employers together develop common goals and proposals to create separate bargaining agreements it is called coordinated bargaining. Coordinated bargaining is a multi employer or multi union bargaining. Coordination takes places vertically in all levels or horizontally between bargaining bodies in different territories or units.
One of the objectives of the unions to go for coordinated bargaining is to increase their bargaining power. Also coordinated bargaining helps in achieving more uniform terms and conditions in the same industry.
The purpose of coordinated bargaining is to create common bargaining goals by negotiations. It is mandatory for all the unions to not deviate from the decided common goals without the consent of the other unions. If the interests of a union of any territory or business unit are neglected during the process of coordination then it will result in unfair labor practice. The main aspects of coordinated bargaining are having a common negotiator, having common goals, maintaining autonomy and having common proposals.
- However employers do not support this type of bargaining because of the loss of their bargaining power.
Example: In the electrical equipment industry bargaining between GE and Westinghouse since 1960’s.