How's Your Leverage? The Bargaining Equation

Leverage in collective bargaining negotiationsisso important in a regulatory framework which condones its use.

When does an employer in a collective bargaining negotiation in a tough environment typically close the deal? So often, the employer's capitulation point arises where the cost of industrial action (and any other pressure which is applied) is perceived to outweigh the cost of making the agreement. One cost reflects the need to alleviate what is short term pain, but often with longer term consequences. The other is one which whilst not felt immediately, becomes increasingly burdensome over the long term.

The cost of industrial action is often overestimated in this scenario because of its immediacy and the direct nature of its impact. There are customers to supply. There is a manufacturing line that can't be interrupted without direct cost. There is a network to run.