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The Following are the some of the important issues in productivity bargaining:

1. Changes in Working Practices/Working Methods:

The objective of the productivity agreements is to make possible constant increase in efficiency. This will require close co-operation between the management and the workers so as to achieve and maintain higher standards in the use of both equipments and manpower. The agreements must specify major changes in working methods to which workers have agreed. Such changes must always be spelt out if there is any possibility of commitments in more general terms by unions/workers that will lead to difficulties in their implementations

2. Measurement of efficiency:

Management should use and devise appropriate yardsticks for measuring the contribution of the workers towards achieving higher level of efficiency and develop a communication system to make use of the results. Work study standards should be applicable to as many manual operations as possible. Work measurement should also be applied to the wide range of clerical and non manual work. It will be necessary to use more broadly, the productivity indices on individual or group basis.

3. Communication System:

Management must operate effective controls including the information which will make it possible to estimate the extent to which increases in efficiency are achieved. The progress or shortfall in achieving the targets must be communicated to the workers from time to time through communication. Care should also be taken to distinguish the contribution of works from other sources of efficient working, for example, quality of raw materials, automatised equipment, and so on.

4. Realistic Calculation of relevant Cost:

The relevant cost of the higher wage/benefit due to settlements are attributable to the workers contribution towards higher productivity, it should be calculated on a very realistic basis. Gain of workers contribution may result from effective working methods, fuller utilization of capital equipment and machines, adaptation of new working methods, and multiple shift working.

5. Wage system and pay grades:

Wage system related more to the productivity should be introduced. This will involve assessment of each job by such methods of the job evaluation and work study. It will necessitate the introduction of different pay grades placing workers in these appropriate to their contribution to the output or skill requirement. Care should, be taken that such grades should not be very few or large in number. There must be sufficient grades to maintain differentials in skill requirement. A large number of grades will result in classification and promotional disputes.

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Q: What are the central issues in productivity bargaining?
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