Productivity bargaining

In this technique, workers' wages and benefits are associated to productivity. A standard productivity index is finalised through initially negotiations. Employees do not have to perform at extremely high levels to beat the index. If they are capable to exceed the standard efficiency norms workers will obtain substantial benefits. Management benefits control over workplace relations and is capable to tighten the norms still additional in future negotiations. Without such efficiency bargaining agreements, workers might not realise the significance of raising productivity for organisational survival and development. Backed up by powerful unions, they might fail to read the danger signals from the market & respond rapidly.