With reference to the Description of the MIBCO Main Collective Agreement centralized bargaining is defined as: “Bargaining within the Motor Industry, as defined in the Agreement, takes place at a centralized level. There shall be no two-tier bargaining on any matter of mutual interest, other than in Sector 6 where the Parties may engage in plant level negotiations on actual wages”
Centralized bargaining is referred to as a process or negotiations between employers or employers’ organizations and a group of employees who are members of a trade union.
The union will negotiate with the employers and/or employers organisations on behalf of its members, on matter such as the number of hours worked, health and safety at the work place, weekly wages and salaries.
In the Retail Motor Industry negotiations are done at a centralized level every 3 years. Once an Agreement is reached and signed by the majority parties to the Council, the Agreement is signed by the Minister of Labour promulgated and enforced by MIBCO in the Motor Industry. Even when a Party to the Negotiations does not sign, the Minister of Labour may extend the Agreement to Non-Parties.
With centralized bargaining parties may not engage in Plant Level negotiations unless provided for in the Agreement on the terms and conditions not governed by the Agreement.
In a Nutshell: Centralised Bargaining is the process were parties reach a Collective Agreement which is industry specific that regulates the employment conditions within the Motor Industry.
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