Definition Definition

Fractional bargaining

Fractional Bargaining refers to the ongoing and informal labor management, decision-making at the workgroup and unit level. It takes place at a department or unit level which may lead to an unwritten consensus to ignore certain provisions of a collective bargaining agreement.

Some of these agreements are formed as a result of the grievance procedure. While other agreements between the parties have evolved into local work rules. 

In other circumstances, the parties agree to deviate from the norms in order to keep things quiet. Other agreements are unwritten promises on how things will be handled in the future. 

The creative use of this process can substantially enhance working relationships by offering the parties much-needed independence from the legalism and bureaucratic constraints of centralized decision-making.

Often this type of informal agreement can lead to serious grievance among the people of all levels involved in the whole process. Trust issues escalated among the working group is the most severe problem for the management to be handled in this bargaining process. 


Use of the Term in a Sentence:

  • Fractional bargaining can help the management to sort internal disputes among the working group.
  • The success of fractional bargaining greatly depends on the man-management skill of the administrative body.


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