Abstract:
The research sought to study the collective bargaining processes in a VUCA environment within the Engineering, Iron and Steel industry in Zimbabwe. The study was influenced by the need to understand the implications and influences on salaries and wages in collective bargaining and how macroeconomic factors influence the outcomes of bargaining processes. Such dynamics if not handled with utmost care and attention, can be extremely costly to the industry and organisations within the same industry. The study employed semi-structured interviews and document analysis to gather data from 28 participants who represented various groups involved in collective bargaining. By focusing on understanding wage determination, the impact of macroeconomic factors, and the challenges posed by the volatile and uncertain environment, this research aimed to shed light on the complexities of bargaining dynamics.
The findings reveal that wages play a crucial role in shaping the outcomes of collective bargaining. Negotiations primarily revolve around wage-related matters, indicating their significance in the bargaining process. Moreover, macroeconomic factors such as economic uncertainties and limited resources have a notable influence on bargaining dynamics. As a result, bargaining parties must employ adaptive strategies to navigate these challenges effectively. The study also highlights the need for agile capabilities in coping with the complex and ambiguous nature of the bargaining environment. Based on the conclusions drawn from the research, several recommendations are proposed. These include fostering a deeper understanding of wage determination mechanisms, closely monitoring and adapting to macroeconomic factors, promoting collaboration and adaptability among bargaining parties, and strengthening legal provisions and regulatory frameworks to support fair bargaining practices. This research contributes valuable insights to the existing knowledge on collective bargaining, wages, and macroeconomic factors. The practical recommendations provided can benefit practitioners, policymakers, and organizations aiming to improve their bargaining strategies and practices.
